Funds worth Rs 650 crore will be infused into M&M's EV arm Mahindra Electric Automobile (MEAL) by British International Investment Plc (BII), lower than what was previously planned, taking the shareholding of BII Group in the automotive player in the range of 2.64-4.58%, a company filing said on December 30.
Shares of Mahindra And Mahindra are down by over a percent on December 30.
BII - the development financial institution of the UK government- had shared its intention to invest Rs 1,925 crore ($250 million) in two tranches in MEAL in February 2023. The first tranche of Rs 1,200 crore was completed in June 2023. Mahindra had at the time of the announcement said that the partnership is aimed to 'accelerate growth of four-wheel passenger EV business and get growth capital to fund the business'.
BII's total investment, and shareholding in MEAL, would be lower than what was initially planned in February 2023. The second tranche was previously proposed to be Rs 725 crore, subject to certain milestones agreed upon between the companies.
In 2023, Temasek too had agreed to invest Rs 1,200 crore in MEAL in tranches at a valuation of upto Rs 80,580 crore, which would mean an ownership between 1.49-2.97%.
M&M has said that as part of its EV vision, the group plans to invest Rs 12,000 crore between FY25-27 to set up manufacturing facility, development and production of its upcoming SUV electric vehicles.
This is being updated.
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