Automaker Mahindra & Mahindra to raise up to $1.3 billion for EV business

Mahindra and Mahindra Ltd, an Indian multinational automotive manufacturing company, is in advanced talks with global investors to raise between $1 billion to $1.3 billion, according to a Mint report today, 22 March.

The company is raising money to accelerate the expansion of its electric vehicle unit EV Co, the report said citing people familiar with the development. It plans to raise capital by selling shares in its unit, currently valued at over $9.1 billion, in multiple tranches over the next two fiscal years.

The Mumbai-based company Mahindra which is known for its SUVs and jeeps, may raise as much as $800 million to $1 billion in the first tranche as early as the first half of financial year 2024.

On Monday, 20 March 2023, Mahindra said it has fully acquired MITRA Agro Equipments Pvt Ltd (M.I.T.R.A)  for an undisclosed amount. The company's Farm Equipment Sector (FES) has increased its stake in MITRA Agro to 100 per cent from the existing 47.33 per cent. As part of the acquisition, Mahindra has fully bought out Omnivore's stake in the business.

"Mahindra aims to grow its farm machinery business by 10-fold in 5 years and is making rapid progress towards achieving this goal. The additional share purchase in M.I.T.R.A would aid Mahindra's growth and expansion into the growing horticulture market," Mahindra & Mahindra Farm Equipment Sector President Hemant Sikka said in a statement.

Last year in December, Mahindra shared its plan to invest Rs 100 billion ($1.21 billion) to set up an EV manufacturing plant near the western city of Pune.

On Wednesday, 22 March, shares of Mahindra closed at Rs 1,165 each, up 0.42 per cent on BSE.

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