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Shares of Mahindra and Mahindra (M&M) jumped over five per cent after British International Investment (BII) and Mahindra & Mahindra (M&M) entered into an agreement to invest up to Rs. 1,925 crores each into a wholly owned electric vehicle subsidiary of M&M—EVCo.
“BII will invest up to Rs 1,925 crores in the form of compulsory convertible instruments at a valuation of up to Rs. 70,070 crores, resulting in 2.75% to 4.76% ownership for BII in the EV Co. The EV Co. will focus on four-wheel (4W) passenger electric vehicles,” the company had said in an exchange filing.
The total capital infusion for the EV Co. is envisaged to be approximately Rs. 8,000 crores / USD 1 billion between FY 24 and FY 27 for the planned product portfolio
“We are extremely delighted to have BII as a partner in our SUV electric journey. In BII, we have found a like-minded long-term partner who is committed to combating the climate emergency. The Mahindra Group aims to be Planet Positive by 2040. Mahindra has been a pioneer in the electric vehicles space, and we are confident we will be the leaders in the electric SUV market in the future,” said Anish Shah, MD & CEO, Mahindra & Mahindra Ltd.
BII’s anchor investment will be key to attracting additional sources of private capital into this exciting venture with the Mahindra Group, said Nick O’Donohoe, CEO, British International Investment.
ब्रिटिश इंटरनेशनल का महिंद्रा के साथ 70000 करोड़ का बड़ा निवेश
ऑटो सेक्टर पर इस डील का क्या होगा असर?
इस डील से ऑटो सेक्टर पर पॉजिटिव होगा सेंटिमेंट?
जानिए अनिल सिंघवी से…
LIVE https://t.co/a276VGspbH#Mahindra #AutoSector @AnilSinghvi_ pic.twitter.com/JqDmwVejaz
— Zee Business (@ZeeBusiness) July 8, 2022
“The acceleration of EV development in India will be critical to supporting the country in reaching its emission targets as well as improving air quality in many urban areas. Mahindra will play a central role in the decarbonisation of the automotive industry in India and elsewhere,” he added.
Earlier, the Board of Directors of the Company has on 7th July, 2022 approved the Sale/Transfer/Hiving off of identified assets relating to the 4 (Four) Wheel Passenger Electric Vehicles Business of the Company to the EVCo.
EVCo will be incorporated as a wholly owned subsidiary of the Company in India, to undertake the Four-Wheel Passenger Electric Vehicles Business of the Company.
British International Investment is the new name for the UK’s Development Finance Institution and was
formerly known as CDC Group. The company has investments in over 1,300 businesses in emerging economies and total assets of GBP
7.7 billion.
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