Mahindra, external investors to infuse Rs 875 cr in Classic Legends

M&M said it would continue to hold 60 percent of the paid up equity share capital of Classic Legends Pvt Ltd

Mahindra & Mahindra (M&M) announced on December 13 that, in collaboration with external investors, it will infuse Rs 875 crore into Classic Legends Pvt Ltd (CLPL).

Classic Legends is the owner of brands such as Jawa, Yezdi, and BSA, operating in India's rapidly expanding premium motorcycle segment.

According to a regulatory filing, Eternal investors and M&M will contribute Rs 350 crore and Rs 525 crore, respectively, over the next 2-3 years to strengthen the business.

Following this investment, M&M will retain a 60% stake in the paid-up equity share capital of Classic Legends.

In the fiscal year ending March 31, 2023, Classic Legends reported revenue from operations of Rs 709.74 crore.

Mahindra & Mahindra's shares were trading at Rs 1,667.15 apiece on the BSE, up 2.02%.