M&M in discussions with British International, other firms to raise Rs 5,000-crore for EV push: Report

The report said that if discussions with Mahindra Electric Automobile come to fruition, the British company will make its second-round investment in the Mumbai-headquartered automaker.

The report, citing unnamed sources, said that the value of the deal is likely to be 10-15 per cent more than the earlier round of funding, which was Rs 70,070 crore ($9. 1 billion). Photo: Reuters

Automaker Mahindra & Mahindra (M&M) is in advance talks with British International Investment (BII) and a few more global investors to raise up to Rs 5,000 crore ($605 million) for its unit of electric vehicles (EV), according to a report by the Economic Times.

The report from the national daily said that if discussions with Mahindra Electric Automobile come to fruition, the British company will make its second-round investment in the Mumbai-headquartered automaker.

The report, citing unnamed sources, said that the value of the deal is likely to be 10-15 per cent more than the earlier round of funding, which was Rs 70,070 crore ($9. 1 billion).

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The Indin automaker informed in July last year that the British company had signed a deal with Mahindra Electric to raise Rs 1,925 crore ($250 million) via compulsory convertible preference shares, equal to a stake of 2.75-4.76 per cent.

"Even though we have not appointed a banker to commence fundraising, our EV business continues to attract interest from investors," the report quoted a Mahindra spokesperson as saying.
The spokesperson further told the national daily, "Our approach has been consistent in terms of raising a small amount of funds to reduce dilution."

The automaker in customary disclosures to stock exchanges had outlined a capex of around Rs 10,000 crore to establish a manufacturing facility in Telangana to make three- and four-wheeler EVs between FY22 and FY27.

Mahindra has many EVs in its pipeline to be launched in the next two years.

The company's successful models, Thar and XUV ranges of SUVs are set to unveil five new EV models between April and October 2025.

The company is aiming to increase the penetration of its SUV segment by 20 to 30 per cent than the current production by FY27.

It is estimated to be 200,000 EVs a year by that time.

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