Mahindra & Mahindra To Acquire 26% Stake In Neon Hybren For Captive 30 MW Solar Project

Mahindra & Mahindra Ltd. (M&M) has announced its plan to acquire a 26% stake in Neon Hybren Private Limited, as part of its strategy to expand the use of renewable energy in its operations. The decision was approved by the company’s board on April 9, 2026, with a total investment of up to Rs. 11.17 crore. The investment will be made in one or more phases, and after completion, Neon will continue to function as a step-down subsidiary of M&M.

The main purpose of this acquisition is to comply with the Electricity Rules, 2005. According to these rules, a company that wants to consume power from a captive power plant must hold at least 26% ownership in that plant. By acquiring this stake, M&M will qualify as a captive user and will be able to source solar power from the project for its own industrial needs.

Neon Hybren is currently developing a 30 MW AC grid-connected, ground-mounted captive solar power plant in Punjab. This project is expected to support M&M’s efforts to reduce its dependence on conventional energy sources and move towards cleaner power. The investment also reflects the company’s long-term focus on sustainability and cost-efficient energy solutions.

The company was incorporated on May 3, 2024, and is still in its early stages of development. For the financial year ending March 31, 2025, Neon reported no revenue from operations and had a net worth of around Rs. 10.77 lakh. Before this transaction, Neon was a wholly-owned subsidiary of Mahindra Susten Private Limited. After the deal, Mahindra Susten’s shareholding will reduce to 74%, while M&M will hold the remaining 26%.

M&M has stated that the deal is a related-party transaction, as it is the ultimate holding company of Neon. However, it clarified that the agreement is being carried out at arm’s length, ensuring fair and market-based terms. The acquisition will be completed through cash consideration and is expected to be finalized by December 31, 2026. The funds raised will be used by Neon to support its business growth and general corporate activities.