Sports utility vehicle maker Mahindra & Mahindra is reportedly in advanced discussions with British International Investment (BII) and other global investors to shore up as much as ₹5,000 crore for its electric vehicles (EV) unit.
What Happened? The new funding round is expected to value Mahindra’s EV subsidiary at a higher valuation than the previous round, which was around ₹70,070 crore, the Economic Times reported, citing sources. BII had previously invested ₹1,925 crore in Mahindra Electric in July 2022.
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Mahindra told the business daily that even though it has not yet appointed a banker for the fundraising, its EV business continues to attract investor interest. They added that the company continues to aim to raise a small amount of funds to minimise dilution.
The capital expenditure for Mahindra’s EV subsidiaries between FY22 and FY27 is estimated to be close to ₹10,000 crore, with ₹4,000 crore to be invested between FY22 and FY24.
In line with its EV expansion plans, Mahindra intends to launch five new EV models between April and October 2025. The company anticipates that e-SUVs will account for 20-30% of its overall SUV portfolio, resulting in sales volumes of around 200,000 units.
Price Action: Mahindra & Mahindra’s share price shot up 0.49% to ₹1,571.75 in early morning trade on Monday.
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