Mahindra and Mahindra (M&M) is in regular touch with global investors to sell its electric vehicle unit and get $1-1.3 billion, Mint reported quoting sources. Mahindra will generate capita; by various rounds of sale of stakes in its new EV arm, as per the sources.
Capital generated by these activities will be utilized for Mahindra and Mahindra’s new EV firm with British International Investment (BIL) in the coming three to five years, as per the report.
The firm calculates Rs10,000 crore investment in the electric vehicle business in the coming two to three years.
What Did The Source Highlight?
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One source has highlighted that the Mahindra Group is also “indulged” with big global private equity, ESG-centered capitals, and sovereign funds for long-term investment in its EV business.
In February, the carmaker revealed that the exchanges that it has locked the deal with BII for Rs1,925 crore ($250 million) in a new four-wheeler passenger electric vehicle firm to be designated by Mahindra and Mahindra.
BII is nothing but a development finance organization by the UK government. The investment is estimated at Rs 70,070 crore ($9.1 billion) and will be done in two tranches in cash.
The first tranche will be up to Rs 1,200 crore and the second will be for Rs 725 crore, the matter of the triumph of particular milestones agreed between the firms.
What Did The Collaboration Bring?
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The collaboration will increase the growth of the four-wheeler passenger electric vehicle business and acquire growth capital to put the money into the business and vitally hold manufacturing abilities and product development of M&M and ecosystem of suppliers, dealers, and financers,” M&M had said.
“We are welcoming to generate capital for our electric SUV business from like-minded investors, who share the same values and share our vision.
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We will draw external investment only if we search for like-minded investors. We have not indulged any investment bankers at this level,” Rajesh Jejurikar, executive director and chief executive of M&M revealed.
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