Mahindra & Mahindra Limited (M&M) has announced its strategic decision to acquire a 26% stake in Neon Hybren Private Limited (Neon), a step-down subsidiary, for an investment amount of up to ₹11.17 crore. This acquisition, approved on April 9, 2026, is a crucial step for M&M to qualify as a captive user under the Electricity Rules 2005. Neon is in the process of establishing a Group Captive Power Plant in Punjab, India, which will supply power to M&M on a captive basis. To meet the regulatory requirement of holding at least 26% of the share capital, M&M will invest in Neon through a preferential issue. This transaction ensures Neon remains a step-down subsidiary of M&M, with Mahindra Susten Private Limited's (MSPL) shareholding diluted to 74% post-transaction. The acquisition is expected to be completed by December 31, 2026. Neon, incorporated on May 3, 2024, is involved in the production and sale of power, electricity generation, and distributed energy solutions, including rooftop solar installations. For the year ended March 31, 2025, Neon reported nil revenue from operations and a net loss of ₹9.23 lakh, with a net worth of ₹10.77 lakh. The investment is considered a related party transaction and will be conducted on an arm's length basis.
