The company and its auto division expects to generate sufficient operating cash to satisfy its capital investment needs and is currently not looking to raise additional capital, it said.
Further, M&M and BII have agreed to extend the timeframe for the final tranche of the latter’s planned investment of Rs 725 crore, the company said.
So far, BII has invested Rs 1,200 crore while Temasek invested Rs 300 crore in Mahindra Electric Automobile Limited (MEAL). Temasek will invest the balance Rs 900 crore as per agreed timeline, M&M said.
UK-based British International Investment had announced deal to invest up to Rs 1,925 crore into Mahindra & Mahindra’s new subsidiary which will focus on the four-wheel passenger electric vehicles business in 2022.
The funds were to be utilized primarily to create and market a world-class electric SUV portfolio with advanced technologies, M&M said.The UK’s Development Finance Institution will invest the money at a valuation of up to Rs 70,070 crore into the new EV company. M&M expected the first round of BII’s investment to be completed not later than June 2023 on fulfilment of conditions precedent and the balance post-completion of certain milestones in FY24.M&M has penciled in a total capital infusion at around Rs 8,000 crore between FY24 and FY27. M&M and BII will work jointly to bring other like-minded investors in the electric vehicle company to match the funding requirement in a phased manner, the company said in a stock exchange filing.
M&M said that the newly set up company will leverage the broader manufacturing capabilities, product development, design organizations along with the ecosystem of suppliers, dealers, and financiers of M&M.
