BII To Invest Up To Rs 1925 Cr In Mahindra's 4-Wheeler Segment

Indian multinational automotive manufacturer Mahindra & Mahindra (M&M) and the British International Investment (BII) have recently inked a pact which will facilitate investment of Rs 1,925 crore each in a wholly owned subsidiary of the home-grown auto major and form a new entity EV Co. As the name suggests, the focus will be on four-wheel passenger electric vehicles. BII has committed to investing close to Rs 1,925 crore in the form of compulsory convertible instruments at a valuation of up to Rs 70,070 crore, earning about 2.75 per cent to 4.76 per cent ownership in the EV Co.

Ev Co is poised for capital infusion of close to Rs 8,000 crore/USD 1 billion between Financial Year 24 and FY 27. "We are extremely delighted to have BII as a partner in our SUV electric journey. In BII, we have found a likeminded long-term partner who is committed to combating the climate the climate emergency. The Mahindra Group aims to be "Planet Positive" by 2040. Mahindra has been a pioneer in the electric vehicles space, and we are confident we will be the leaders in the electric SUV market in the future," M&M MD & CEO Anish Shah said.

M&M Executive Director - Auto & Farm Sectors Rajesh Jejurikar expressed hope that 20 to 30 per cent of company SUVs will be electric by 2027.

Hopeful that its anchor investment will attract additional sources of private capital, BII CEO Nick O'Donohoe, said, "The acceleration of EV development in India will be critical to supporting the country in reaching its emission targets as well as improving air quality in many urban areas. The first round of BII's capital investment will be completed not later than June 2023 on fulfilment of conditions precedent and the balance post completion of certain milestones in FY24."

BII boasts of investments in over 1,300 businesses in emerging economies. Its assets total up to GBP 7.7 billion.