Mahindra & Mahindra in talks for Rs 5,000 crore EV push from British International, others – EQ Mag
In July 2022, British International Investment signed a pact with Mahindra Electric to invest Rs 1,925 crore via compulsory convertible preference shares
Automaker Mahindra & Mahindra (M&M) is in advanced discussions with British International Investment (BII) and some other global investors to raise up to Rs 5,000 crore ($605 million) for its electric vehicles (EV) unit, a report has said.
If the talks on Mahindra Electric Automobile reach a successful conclusion, the British development financier will be making its second-round investment in the Mumbai-headquartered automaker, the Economic Times has reported.
The deal valuation is likely to be 10-15 percent more than the earlier round of funding, which valued Mahindra’s EV subsidiary at Rs 70,070 crore ($9. 1 billion), the report said, citing unnamed sources.
BII inked a pact with Mahindra Electric to pump in Rs 1,925 crore ($250 million) in July 2022 via compulsory convertible preference shares, which would result in a stake of 2. 75-4. 76 percent, depending upon milestones achieved, the report said.
“Even though we have not appointed a banker to commence fundraising, our EV business continues to attract interest from investors,” a Mahindra spokesperson said in an emailed response to the financial daily’s queries. “Our approach has been consistent in terms of raising a small amount of funds to reduce dilution.”
Mahindra has outlined a capex of nearly Rs 10,000 crore to set up a manufacturing facility in Telangana to make electric three- and four-wheelers between FY22 and FY27, the company said in customary disclosures to stock exchanges.
The maker of the Scorpio, Thar and XUV range of SUVs is poised to roll out five new EV models between April and October 2025. M&M expects its electric SUV penetration to be 20-30 percent of its overall SUV portfolio by FY27—200,000 annual EV volume at the upper end.
Source: PTI
