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British International Investment to invest Rs 1,925 Cr in new 4W EV arm of M&M

  • BII’s investment of $ 250 million is in the form of compulsory convertible instruments at a valuation of up to $ 9.1 Billion.
  • A new four-wheel passenger electric vehicle company is to be set up by Mahindra & Mahindra Ltd.

Mumbai: British International Investment (BII), the UK’s development finance major and Mahindra & Mahindra (M&M) have executed an agreement to invest up to Rs 1,925 crore ($250 mn) each into a newly incorporated EV Co., a wholly-owned subsidiary of M&M, the company said in a statement.

BII’s investment of up to 1,925 crores in the form of compulsory convertible instruments at a valuation of up to Rs. 70,070 crores will result in 2.75% to 4.76% ownership for BII in M&M’s EV arm. The EV Co. will focus on four-wheel (4W) passenger electric vehicles.

The total capital infusion for the EV Co. is envisaged to be approximately Rs. 8,000 crores / $1 billion between FY 24 and FY 27 for the planned product portfolio, M&M said, to be brought in a phased manner by other like-minded investors.

The company said that BII’s investment would boost the availability and adoption of EVs in India and other markets served by M&M. The investment alongside Mahindra & Mahindra in the new EV company supports BII’s undertaking of investing at least 30% in climate finance.

The new EV Co. will significantly leverage the broader manufacturing capabilities, product development, and design organizations along with the supplier, dealer, and financier ecosystem of M&M. The funds will be primarily utilized to create and market a world-class electric SUV portfolio loaded with advanced technologies.

Anish Shah, MD & CEO, M&M Ltd., said, “In BII, we have found a like-minded long-term partner committed to combating the climate emergency. The Mahindra Group aims to be Planet Positive by 2040. Mahindra has been a pioneer in the electric vehicles space, and we are confident we will be the leaders in the electric SUV market in the future.”