M&M rallies 5%, hits record high as automaker looks to invest in new EV entity
Published On: Friday, July 8, 2022 | By: Team KnowMyStock
Shares of Mahindra & Mahindra (M&M) hit a new high of Rs 1,191.90 after they rallied 5 percent on the BSE in Friday's intra-day trade. This comes after the company the automaker inked a pact with the British International Investment (BII) to invest Rs 1,925 crore each in a wholly-owned subsidiary of the home-grown auto major, focusing on four-wheel passenger electric vehicles.BII will invest up to Rs 1,925 crores in the form of compulsory convertible instruments at a valuation of up to Rs. 70,070 crores, resulting in 2.75% to 4.76% ownership for BII in the EV Co.," M&M said in a stock exchange filing. The total capital infusion for the EV Co. is envisaged to be approximately Rs 8,000 crores / $1 billion between FY24 and FY27 for the planned product portfolio.
"We are extremely delighted to have BII as a partner in our SUVelectric journey. In BII, we have found a like-minded long-term partner who is committed to combating the climate emergency," M&M MD & CEO Anish Shah said.The Mahindra Group aims to be "Planet Positive" by 2040, he noted
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