BII to invest Rs 1,925 cr into M&M’s SUV biz
BII to invest Rs 1,925 cr into M&M’s SUV biz
UK-based British International Investment will be investing up to Rs 1,925 crore into Mahindra & Mahindra's new subsidiary which will focus on the four-wheel passenger electric vehicles business, it said on Thursday.
The funds will be utilized primarily to create and market a world-class electric SUV portfolio with advanced technologies, M&M said.
The UK's Development Finance Institution will invest the money at a valuation of up to Rs 70,070 crore into the new EV company.
M&M expects the first round of BII's investment to be completed not later than June 2023 on fulfilment of conditions precedent and the balance post-completion of certain milestones in FY24.
M&M has penciled in a total capital infusion at around Rs 8,000 crore between FY24 and FY27. M&M and BII will work jointly to bring other like-minded investors in the electric vehicle company to match the funding requirement in a phased manner, the company said in a stock exchange filing.
"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," said Anish Shah, MD & CEO, Mahindra & Mahindra.
M&M said that the newly set up company will leverage the broader manufacturing capabilities, product development, design organizations along with the ecosystem of suppliers, dealers, and financiers of M&M.
"BII's anchor investment will be key to attracting additional sources of private capital into this exciting venture with the Mahindra Group. 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," said Nick O'Donohoe, CEO of BII said.
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