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.
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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.
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.
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