Mahindra & Mahindra Ltd is in advanced negotiations with foreign investors to raise $1-1.3 billion by selling shares in its electric vehicles (EV) unit, this move is intended to accelerate the expansion ambitions of its newly established subsidiary, EV Co.
Over the next two fiscal years, Mahindra is projected to raise cash in various tranches, mostly through share sales in its EV business, which is now valued at more than $9.1 billion.
By creating a new EV plant near Pune and developing platforms for its next electric sport utility vehicles, Mahindra is prepared for a future dominated by sustainable mobility. (SUVs). The company has predicted that it would need to invest at least 10,000 crore in its EV sector over the next 2-3 years. They are slated to launch five new e-SUVs under the iconic brand – XUV …and the all-new electric-only brand called ‘BE.”
The first of these e-SUVs will be released around the end of 2024. The Born EVs will be built on the state-of-the-art INGLO EV Platform, which the company has created in-house. The company has just debuted its first electric SUV, the XUV400, which received 15,000 bookings in 13 days, making it India’s fastest booked electric SUV.
According to sources the company may raise as much as $800 million to $1 billion in the first tranche of fundraising as early as the first half of FY2024. The cash expected to be raised will most likely be invested in the EV business during the next three to five years.
The above article is based on an exclusive Mint story; edited by Clean-Future Team