Mahindra to acquire 26% stake in Neon Hybren for Punjab captive solar project

Neon is in the process of establishing a grid-connected photovoltaic ground-mounted captive power plant to supply electricity to M&M on a captive basis.

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Mahindra & Mahindra (M&M) on Thursday said it has approved the acquisition of a 26 per cent stake in Neon Hybren Private Ltd as part of plans to set up a group captive solar power project in Punjab.In a regulatory filing, the company said Neon is in the process of establishing a grid-connected photovoltaic ground-mounted captive power plant to supply electricity to M&M on a captive basis. Under the Electricity Rules, 2005, captive consumers are required to hold at least 26 per cent of the share capital in the captive power entity.Neon Hybren is a wholly-owned subsidiary of Mahindra Susten Private Limited (MSPL), which is a subsidiary of Mahindra Holdings Limited, a wholly-owned subsidiary of M&M. Neon is currently a step-down subsidiary of the company.M&M said it has approved the acquisition of the stake in one or more tranches and has executed a Share Subscription and Shareholders Agreement with Neon and MSPL. Following the transaction, MSPL’s shareholding in Neon will reduce to 74 per cent from 100 per cent, though Neon will continue to remain a step-down subsidiary of M&M.

The company said it will invest up to ₹11.17 crore through preferential subscription of equity shares, based on a valuation report.

Neon will develop up to a 30 MW AC solar power project in Punjab, which will be structured as a group captive generating plant. The proceeds raised will be used for future business operations and general corporate purposes.

The transaction is expected to be completed by December 31, 2026, the filing said.