M&M to raise up to $1.3 bn for EV unit

It'll raise the sum in multiple tranches over next two fiscal years

- Anirudh Laskar & Alisha Sachdev

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, people familiar with the development said, adding the 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, which is currently valued at over $9.1 billion, the people said, requesting anonymity.

Mahindra is preparing for a future dominated by sustainable transportation by establishing a new EV factory near Pune and developing platforms for its upcoming electric sport utility vehicles (SUVs). The conglomerate has estimated an investment requirement of at least ₹10,000 crore for its EV business over the next 2-3 years.

In July, Mahindra and British International Investment (BII), the UK’s development finance institution, signed a binding agreement to invest as much as $250 million each into Mahindra’s EV subsidiary.