Indian carmakers Mahindra and Mahindra Ltd are in advanced talks with global investors to raise between $1 billion (about Rs 82,659 crore) and $1.3 billion to accelerate the expansion of their electric vehicle units, Mint reported on Wednesday.
The report quoted people familiar with the matter as saying that the company plans to raise funds by selling shares in its unit, which is currently valued at more than $9.1 billion (approximately Rs. 7,522,242 crore), in multiple installments over the next two fiscal years.
Mahindra did not immediately respond to a Reuters request for comment.
Mahindra shares rose 1.7% on Wednesday but are still down more than 6% year to date, while rival Tata Motors has gained 7%
The Mumbai-based conglomerate may raise a first tranche of up to $800 million (roughly Rs. 6,613 crore) to $1 billion (roughly Rs. 8,265.9 crore) as early as the first half of fiscal 2024, the newspaper said.
The Indian government plans to increase the proportion of electric vehicles in annual vehicle sales to 30% by 2030 from the current 1%. Mahindra, known for its sports utility vehicles (SUVs) and Jeeps, has increased investment to enhance its electric vehicle production capacity.
In December, the company announced plans to invest 100 billion rupees ($1.21 billion) to build an electric vehicle manufacturing plant near the western city of Pune to compete with Tata Motors, which dominates India’s electric vehicle market.
Tata Motors is also in talks with sovereign wealth funds and private equity investors to raise up to $1 billion (approximately Rs 82,659 crore) by selling a stake in its electric vehicle business, The Economic Times reported in February.
© Thomson Reuters 2023
