CDPQ invests $206m in India's Mahindra

According to stock market data, CDPQ acquired nearly 22 million shares in Mahindra – representing a 1.8% stake – for INR648 each, a slight discount to the June 3 closing price of INR653.40. The majority of the shares came from M&M Benefit Trust, an investment vehicle controlled by the company's promoters, while the remainder were reportedly acquired from the M&M Employees Welfare Fund.

Mahindra is the world's largest tractor brand by volume and India's largest manufacturer of utility vehicles. It also has interests in the financial services, information technology, and hospitality sectors. The proceeds from CDPQ's investment will be transferred to the parent company and used for its operational requirements.

"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," said Anita George, CDPQ's executive vice president for growth markets and strategic partnerships, in a statement. "We believe that the long-term value creation approach of the Mahindra Group aligns well with CDPQ's objectives and perspective as a global institutional investor."

CDPQ had C$309.5 billion ($230.3 billion) in global assets under management as of December 2018. Growth markets, which include India, China, and Latin America, accounted for 14% of the total.

The pension plan's India portfolio covers a range of sectors, including energy companies Azure Power and CLP India, third-party logistics service TVS Logistics, and Kotak Mahindra Bank. It has also partnered with Edelweiss Group for investments in distressed assets and private debt in the country.

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• Topics
• South Asia
• Industrials
• PIPEs
• India
• Caisse de depot et placement du Quebec (CDPQ)
• automobiles
• manufacturing