We will look at listing some of our private growth gems: Mahindra’s Anish Shah

In some ways, we are open to external capital - but only from investors who can help us grow the business. For instance, we have raised private equity funding for Mahindra Last Mile Mobility and Mahindra Susten, sMahindra Group chief executive Anish Shah said.

Mahindra Group’s strategic investors, Temasek and Ontario Teachers’ Pension Plan, brought in to help scale up its electric vehicles and renewables businesses, are likely to exit once these new ventures go public, chief executive Anish Shah said.

The Group will also look at listing some of its other private companies, which it calls private growth gems. “If we look at the Susten InvIT, there is already an exit option for investors. Look at MEAL (Mahindra Electric Automobile Ltd) and Last Mile Mobility, the three-wheeler business; we will look at listing them over time when they reach a significant scale,” Shah said.

“So, the paths (to exit) will be through a public listing. Our focus is to drive the core engine of the business to deliver growth. And if we do that well, the market will reward us.”

The last IPO to come out of the Mahindra stable was of Mahindra Logistics Ltd in 2017, after a gap of almost eight years when Mahindra Holidays & Resorts went public in 2009.

Also read: No immediate plan for auto business demerger, says Mahindra CEO Shah

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Shah noted that while Mahindra Group remains open to external capital for its group companies, it will be very selective about the investors they choose to bring in.

“In some ways, we are open to external capital, but only from investors who can help us grow the business. For instance, we have raised private equity funding for Mahindra Last Mile Mobility and Mahindra Susten. In both cases, it was not only about capital per se, it was about having the right set of partners who could help us grow these businesses,” he said.

Shah added that since the group has sufficient internal accruals and cash on its books, it continues to be very judicious about raising capital from outside.

“Our focus will be to execute well and grow our businesses; if you do that, plenty of capital is available,” he said.