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M&M to Invest Rs 37 Crore for 26 % Stake in Gelos to Secure Captive Renewable Power

Mahindra & Mahindra (M&M) has approved an investment of Rs37.14 crore to acquire a 26% stake in Gelos Solren Pvt. Ltd., a step-down subsidiary involved in renewable energy generation. The move aims to secure dedicated green power for the automaker through a group-captive hybrid project in Maharashtra.

Under the plan, M&M will subscribe to 10,53,877 equity shares of Gelos at Rs352.44 per share, with the transaction expected to be completed by April 30, 2026.

Gelos Solren, fully owned by Mahindra Susten Pvt. Ltd. (MSPL), reported a Rs3.84 crore loss in FY 2024–25 and had a net worth of Rs3.67 crore. According to M&M, Gelos is setting up a group-captive hybrid power plant—combining 100.8 MW of wind and 50 MW of solar (AC)—to supply renewable energy to M&M and other captive users.

As per the Electricity Rules, 2005, captive users must jointly hold at least 26% of the generator’s equity, prompting M&M’s investment. After the allotment of new shares, MSPL will retain 74% ownership, while M&M will hold 26% of Gelos’ expanded equity base of 40,53,372 shares. The capital infusion will be used for project development, working capital, and general corporate needs of Gelos.