M&M CEO says plans to sell additional stake in EV biz
Last year, the Mahindra group initiated a Rs 10,000 crore investment cycle in its EV business, with British International Investment contributing Rs 1,925 crore ($250 million) to the venture
- Jul 10, 2023,
- Updated Jul 10, 2023 8:02 PM IST
Auto major Mahindra & Mahindra Ltd (M&M) on Monday said that it is considering to sell about 2-3 per cent stake in the firm's electric vehicle (EV) business, according to Anish Shah, the Managing Director and CEO of the company.
In an interview with CNBC-TV18, Shah revealed that M&M has never actively sought external funding for its EV business.
Shah disclosed that BII (British International Investment) has already acquired a 2.5-3 percent stake in the EV business, and there is a possibility of another 2.5-3 percent stake being sold in the future. The timing of this additional stake sale remains uncertain. The potential investment would be made in tranches, indicating a phased approach to capital infusion.
Shah also mentioned that M&M is currently engaged in discussions with marquee investors for the EV business.
While M&M is open to attracting external investment, the company is cautious about diluting its stake significantly, highlighting its intention to retain strong control over the operations of its EV business.
Last year, the Mahindra group initiated a Rs 10,000 crore investment cycle in its EV business, with British International Investment contributing Rs 1,925 crore ($250 million) to the venture.
Although BII's investment has been completed, M&M is actively pursuing further investments from other potential investors. Shah clarified that BII will not be making any additional investments in the EV business.
Meanwhile, on Friday, the company, in a stock exchange filing, dismissed rumours of its electric vehicles (EV) business, EV Co, attracting investments to the tune of Rs 6,000 crore as being "purely speculative”.
"The Company has received calls regarding a market rumour that a potential investor is infusing funds to the tune of Rs 6,000 crores in the EV business of the Company. In view of the above speculation, the Company on its own considers it necessary to clarify to the Stock Exchanges that even though the Company has not appointed a banker to commence fund raising, the EV business of the Company continues to attract interest from investors," said the firm in a stock exchange filing
"Further, as an ongoing process, the Company continues discussions with a select set of marquee investors and the amounts indicated are purely speculative. The Company’s approach has been consistent in terms of raising a small amount of funds to reduce dilution. The Company has complied with and continues to comply with the relevant disclosure norms under the Listing Regulations," said M&M.
The Indian auto major announced that it will launch five electric SUVs for both domestic and international markets. The automaker said the five electric SUV models would be introduced under two brands -- XUV and the all-new electric-only brand called BE.
Legacy brands will come under the XUV brand while the all-new electric model would be rolled out under the BE lineage.The Mumbai-based automaker expects a quarter of the SUVs it sells to be electric by 2027.
Auto major Mahindra & Mahindra Ltd (M&M) on Monday said that it is considering to sell about 2-3 per cent stake in the firm's electric vehicle (EV) business, according to Anish Shah, the Managing Director and CEO of the company.
In an interview with CNBC-TV18, Shah revealed that M&M has never actively sought external funding for its EV business.
Shah disclosed that BII (British International Investment) has already acquired a 2.5-3 percent stake in the EV business, and there is a possibility of another 2.5-3 percent stake being sold in the future. The timing of this additional stake sale remains uncertain. The potential investment would be made in tranches, indicating a phased approach to capital infusion.
Shah also mentioned that M&M is currently engaged in discussions with marquee investors for the EV business.
While M&M is open to attracting external investment, the company is cautious about diluting its stake significantly, highlighting its intention to retain strong control over the operations of its EV business.
Last year, the Mahindra group initiated a Rs 10,000 crore investment cycle in its EV business, with British International Investment contributing Rs 1,925 crore ($250 million) to the venture.
Although BII's investment has been completed, M&M is actively pursuing further investments from other potential investors. Shah clarified that BII will not be making any additional investments in the EV business.
Meanwhile, on Friday, the company, in a stock exchange filing, dismissed rumours of its electric vehicles (EV) business, EV Co, attracting investments to the tune of Rs 6,000 crore as being "purely speculative”.
"The Company has received calls regarding a market rumour that a potential investor is infusing funds to the tune of Rs 6,000 crores in the EV business of the Company. In view of the above speculation, the Company on its own considers it necessary to clarify to the Stock Exchanges that even though the Company has not appointed a banker to commence fund raising, the EV business of the Company continues to attract interest from investors," said the firm in a stock exchange filing
"Further, as an ongoing process, the Company continues discussions with a select set of marquee investors and the amounts indicated are purely speculative. The Company’s approach has been consistent in terms of raising a small amount of funds to reduce dilution. The Company has complied with and continues to comply with the relevant disclosure norms under the Listing Regulations," said M&M.
The Indian auto major announced that it will launch five electric SUVs for both domestic and international markets. The automaker said the five electric SUV models would be introduced under two brands -- XUV and the all-new electric-only brand called BE.
Legacy brands will come under the XUV brand while the all-new electric model would be rolled out under the BE lineage.The Mumbai-based automaker expects a quarter of the SUVs it sells to be electric by 2027.