Upcoming Mahindra EV Subsidiary Raises USD 250 Million Investment | V3Cars

10 July 2022
By Mohammad Osaaf
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Mahindra are set to introduce a new subsidiary for their upcoming 4-wheel EVs. The British International Investment, the UK’s Development Finance Institution, have signed a binding agreement with Mahindra & Mahindra to invest upto Rs. 1,925 crore (or USD 250 million) each in this new EV subsidiary. Khaitan & Co. acted as legal counsel to Mahindra & Mahindra in this transaction.

British International Investment will invest up to INR 1,925 crores in the form of compulsory convertible instruments at a valuation of up to INR 70,070 crores (or USD 9.1 billion), resulting in 2.75% to 4.76% ownership for British International Investment in the upcoming ‘EV Co.’

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EV Co. is what the brands are calling the upcoming subsidiary in their joint release. However, we think that the subsidiary will have a different name upon launch. Both companies expect to raise a total investment of Rs. 8,000 crore (USD 1 billion) between the financial year 2024 and the financial year 2027. The EV Co. will focus on 4-wheel electric passenger vehicles.

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Dr. Anish Shah, MD & CEO, Mahindra & Mahindra Ltd., said: "We are extremely delighted to have BII as a partner in our SUV electric journey. In Bll, we have found a like-minded long-term partner who is committed to combating 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."

Mr. Nick O'Donohoe, CEO, British International Investment, commented: "Bil's anchor investment will be key to attracting additional sources of private capital into this exciting venture with the Mahindra Group. 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. Mahindra will play a central role in the decarbonisation of the automotive industry in India and elsewhere."

Mr. Samir Abhyankar, Managing Director and Head of Direct Private Equity, British International Investment., said: "Climate change is one of the biggest challenges of our time. The investment into Mahindra's EV business is in line with our decarbonization strategy and focus of supporting sustainable business models that create new jobs, particularly for women. We are delighted to be backing Mahindra to execute on their compelling EV strategy and ambition and crowd in other like-minded investors in the future."

Also Read: Mahindra Partner With Volkswagen To Source MEB Components | V3Cars

ABOUT THE AUTHOR

Mohammad Osaaf

In the age of SUVs and crossovers, it's the traditional, 3-box sleeper sedans that excite him the most. All it needs is a punchy engine, a tight chassis and everyday practicality. Skoda Octavia VRS and BMW M5 are his favourites.

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