Mahindra & Mahindra, Ola Electric Go Hunting For Cash To Capitalise On EV Fanfare

Mahindra & Mahindra is in the process of raising fresh funds to develop their facilities as EV adoption continues to pick up pace in India.

What Happened? Mahindra & Mahindra is currently at an advanced stage of talks to raise an amount between ₹1 billion (₹8,268.68 crore) and $1.3 billion (₹10,747.65 crore) by selling shares in its electric vehicles (EV) unit.

According to a report by Mint, the company, currently valued at over $9.1 billion (₹75,216.63 crore), plans to sell shares in tranches to global investors over the next two fiscal years.

The report states that the Mumbai-headquartered conglomerate may raise as much as $800 million (₹6,612.02 crore) to $1 billion (₹₹8,268.68 crore) in the first tranche as early as the first half of the financial year 2024.

See also: Tata Motors Hikes Some Vehicle Prices And Investors Are Loving It

The company is looking to bolster its EV capacity as the Indian government aims to increase the share of EVs to 30% of total annual car sales by 2030 from 1% currently.

News that Moves

Get Ring The Bell, Benzinga India’s weekly briefing. Designed specifically for investors like you.

Similar Goals: Ola Electric, albeit a much smaller company in terms of overall market cap, is also planning to raise a fresh round of $250-300 million (₹2,066.27-2,479.70 crore) in growth equity. Per an Economic Times report, the company plans to use the fresh funds to expand two-wheeler operations and fund its due battery facility.

The largest electric two-wheeler company last raised $200 million (₹1,653.06 crore) in a fundraising round in January 2022. The company is hoping to see a fresh round of fundraising value at $6.5-7 billion (₹53,722.35 – 57,856.65 crore), based on the expectation of turning EBITDA positive from the 2024 financial year.

Read next: Delhi Budget: Why These EV Stocks Are Surging Today

Posted In: electric vehiclesEVMahindra & MahindraOla Electric