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May 26, 2010, 08.24 PM IST | Source: Moneycontrol.com

M&M buys majority stake in Reva

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.

CNBC-TV18

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&Ms 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:
In a related development, sources told CNBC-TV18 that General Motors has called off its collaboration with Reva. It has also shelves the launch of the electric Spark. GM will now focus on in-house technology for electric cars in India.

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 August 22, 2014, Mahindra and Mahindra closed at Rs 1396.30, down Rs 3.7, or 0.26 percent. The 52-week high of the share was Rs 1413.90 and the 52-week low was Rs 741.50.


The company's trailing 12-month (TTM) EPS was at Rs 60.11 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 23.23. The latest book value of the company is Rs 272.84 per share. At current value, the price-to-book value of the company is 5.12.

READ MORE ON  M&M, Mahindra and Mahindra
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