Canadian pension fund CDPQ buys Mahindra & Mahindra shares worth $177m

Photo: Reuters

Mahindra and Mahindra (M&M) Benefit Trust has sold 19.2 million shares of auto maker Mahindra and Mahindra Ltd, amounting to ₹1,244 crore, to Canada’s second largest pension fund Caisse de Dépôt et Placement du Québec (CDPQ), the company said in an exchange filing on Monday.

CDPQ manages funds for several public and para-public organisations, mainly pension and insurance plans, in Quebec, Canada. CDPQ, which was created in 1965, today manages more than C$309.5 billion, with investments in as many as 60 countries.

The M&M Benefit Trust was created in July 2008. The shares held by the trust were the outcome of various mergers and schemes of amalgamation. The trust holds 103.6 million shares of the firm.

“As the Benefit Trust holds M&M shares for the benefit of its shareholders, it has decided to monetize part of the holding by divesting to a long-term, high-quality investor. This is the first investment by CDPQ in the Mahindra Group, reposing its faith in the future prospects of the company and the Indian economy in general,” said V.S. Parthasarathy, chief financial officer of Mahindra Group.

The proceeds of the sale would be transferred to M&M, which would be used by the company for various operational requirements. Post the transaction, the M&M Benefit Trust will hold 84.4 million shares, representing 6.8% of the equity capital of the company.

“We are excited to partner with the Mahindra Group in this first investment and are looking forward to further developments in this strategic partnership as we grow our portfolio in India and across the world. We believe that the long-term value creation approach of the Mahindra Group aligns well with CDPQ objectives and perspective as a global institutional investor,” said Anita George, executive vice-president, growth markets and strategic partnerships, CDPQ.

CDPQ’s other investments in India include renewable energy producers such as Azure Power and CLP India, Edelweiss group’s non-banking financial services arm, TVS Logistics, and Kotak Mahindra Bank.

On Monday, shares of Mahindra & Mahindra closed at ₹653.9 per share, up 1.05% on BSE, while the benchmark Sensex closed at 40,267.62 points, up 1.39%.

This article was first published on livemint.com.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.