M&M to raise $1.3 billion for EV unit: Report

Auto major Mahindra & Mahindra Ltd is in advanced talks with global investors to raise $1-1.3 billion by selling shares in its electric vehicles (EV) unit, reported Mint citing sources. The newspaper said that this move is aimed at accelerating the expansion plans of its newly formed subsidiary, EV Co.

Mahindra is likely to raise capital in multiple tranches over the next two fiscal years, primarily through stake sales in the EV subsidiary. Mahindra is preparing to establish a new EV factory near Pune and developing platforms for its upcoming electric sport utility vehicles. The conglomerate has estimated an investment requirement of at least ₹10,000 crore for its EV business over the next 2-3 years.

Last year, Mahindra and British International Investment (BII) signed a binding agreement to invest as much as $250 million each into Mahindra’s EV subsidiary.