Mahindra and Mahindra (M&M) has bought a majority stake in electric car company, Reva. With this, the commercial vehicle major would hold 55.2% in Reva via the stake sale and fresh equity infusion.
Mahindra and Mahindra (M&M) has bought a majority stake in electric car company, Reva. The commercial vehicle major would now hold 55.2% in Reva via the stake sale and fresh equity infusion.
M&M would invest USD 10 million in the electric car major and would rename the company as Mahindra Reva Electric.
Pawan Goenka, president of M&M’s automotive and farm equipment sector would be the Chairman of the renamed company.
According to industry experts, the enterprise value of Reva is approximately Rs 500 crore.
Reva is sold in 24 countries and has over 3,000 units on road already. The company produces approximately 30,000 units per annum at its plant in Bangalore. It has the largest deployed fleet of electric cars in the market. It is currently working on the Reva NXR.
GM calls off tie-up:
Reva had entered into a collaboration agreement with General Motors last year. GM India was also developing the electric Spark with Reva, which was to be rolled out by year-end.
M&M stock price
On October 30, 2014, Mahindra and Mahindra closed at Rs 1287.60, down Rs 8.75, or 0.67 percent. The 52-week high of the share was Rs 1421.00 and the 52-week low was Rs 847.00.
The company's trailing 12-month (TTM) EPS was at Rs 59.61 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 21.6. The latest book value of the company is Rs 270.60 per share. At current value, the price-to-book value of the company is 4.76.
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