Mahindra & Mahindra Limited announced that its subsidiary, Mahindra Renewables Private Limited (MRPL), has agreed to sell its entire stake in three subsidiaries to CLP India Private Limited (CLP) for ~₹3.40 billion ($47.35 million).

The three subsidiaries include Cleansolar Renewable Energy Private Limited (CREPL), Divine Solren Private Limited (DSPL), and Neo Solren Private Limited (NSPL).

The expected date of completion of the sale is May 31, 2020.

According to the National Stock Exchange of India Limited (NSE), the company said, “Following the sale, MRPL’s shareholding in CREPL, DSPL, and NSPL would come down to nil, and CREPL, DSPL, and NSPL, will cease to be the subsidiaries of MRPL and consequently of the company.”

According to the company, the share purchase agreement offered to sell 9,623,000 equity shares of ₹10 (~$0.14) each at a price of ₹113.11 (~$1.57)/share totaling ₹1.088 billion (~$15.16 million). The agreement was executed on February 21, 2020.

CLP will acquire 12,080,000 equity shares of ₹10 (~$0.14) each in DSLP at a price of ₹104.57 (~$1.45)/share amounting to ₹1.26 billion (~$17 million).

Similarly, the company has agreed to sell 9,315,000 equity shares of ₹10 (~$0.14) each in NSLP to CLP. The price has been agreed at ₹112.37 (~$1.56)/share aggregating to a total amount of  ₹1.046 billion (~$14.57 million).

The turnover of Cleansolar Renewable Energy for the financial year (FY) that ended on March 31, 2019, was ₹391.5 million ($5.455 million).  The net worth of CREPL for FY 2019, was ₹639.6 million ($8.91 million).

Likewise, the turnover of Divine Solren Private Limited for the fiscal year 2019 was ₹541.8 million ($7.55 million), and the net worth of the company was ₹857.8 million ($11.95 million).

Neo Solren Private Limited’s turnover of FY 2019 was ₹426.8 million ($5.94 million), while the net worth of the company was ₹729.6 million ($10.16 million).

According to Mercom’s India Solar Project Tracker, Mahindra has three solar projects in operation in Telangana worth 122 MW capacity. Of the company’s total portfolio of ~1.25 GW, 552 MW is operational, while 700 MW capacity is under development.

Last year, Japanese trading and investment company Mitsui announced that it entered into an agreement with Indian engineering, procurement, and construction company, Mahindra Susten, to develop and operate distributed solar projects in India jointly. Mitsui acquired a 49% stake in Marvel Solren Private Limited, a Mahindra company that had a portfolio of 16 MW of distributed solar. Mahindra Susten is the solar EPC arm of the Mahindra Group.