Mahindra Electric Automobile Limited (MEAL), the electric vehicle arm of Mahindra & Mahindra (M&M), has received Rs 650 crore from British International Investment Plc (BII) as the final tranche of its funding. This investment is part of BII’s earlier commitment to infuse Rs 1,925 crore into the company, aimed at accelerating the growth of Mahindra’s four-wheeler passenger EV business.
The latest funding takes BII Group’s stake in MEAL to an estimated 2.64-4.58%, according to a company filing on December 30. The investment is lower than the Rs 725 crore originally planned for the second tranche, since some of the milestones agreed between the companies were not fully met.
BII, in June last year, had completed its first tranche investment of around Rs 1,200 crore in MEAL. It had announced the same first in February to in 2023., said that cash inputs will act as an extension of growth capital to amplify the passenger electric vehicle franchise,.
In a related development, Singapore-based investment firm Temasek had also promised to invest Rs 1,200 crore in MEAL in tranches during 2023. At a valuation of up to Rs 80,580 crore, the ownership of Temasek in the firm is expected at 1.49-2.97%.
The plan is part of a broader electric vehicle strategy of M&M, which will invest Rs 12,000 crore during FY25-FY27. This would go into setting up the manufacturing facility and developing new electric SUV models, adding further heft to Mahindra’s presence in the country’s fast-growing EV market.
On December 30, M&M shares traded over 1% down following the announcement of reduced second tranche from BII.
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Source: Moneycontrol
News Desk
