Mahindra and Mahindra (M&M) is looking to offload 2.5-3 per cent stake in its electric vehicle business.
The company is in discussions with investors regarding the same, Anish Shah, MD and CEO of the company told CNBC-TV18. “We have never actively looked for funding in our EV business and we would not like to dilute a lot. British International Investment (BII) has come in with a 2.5-3 per cent stake and we may look at a 2.5-3 per cent stake at some point in time,” said Shah.
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No timeline
The company does not have a timeline for the offloading of stake. “BII has already put in its investment which is in trenches. Discussions we have right now are with investors in addition to BII,” Shah added.
In July 2022, BII, the UK’s Development Finance Institution, executed a binding agreement with M&M to invest up to ₹1,925 crore. The first round of capital investment of ₹1,200 crore was expected to be completed by June this year and the remaining ₹725 crore after the completion of certain milestones in FY24.
The total capital infusion is envisaged to be approximately ₹8,000 crore between FY24 and FY27 for the planned product portfolio. M&M has earmarked an additional ₹2,000 crore till FY27, taking the total investments to ₹10,000 crore.