Shares of Mahindra & Mahindra (M&M) hit their all-time high today after the firm said British International Investment (BII) would invest up to Rs 1,925 crore or $250 million into a new electric passenger vehicle company to be set up by the Indian auto major. The large-cap stock hit an all-time high of Rs 1,191.90, rising 5.17 per cent against the previous close of Rs 1,133.35 on BSE.
M&M stock is trading higher than 5-day, 20-day, 50 day, 100-day and 200-day moving averages. The auto stock opened with a gain of 4.14 per cent to Rs 1,180.25 on BSE.
The share has risen 36.8 per cent since the beginning of this year and zoomed 47.58 per cent in a year. Total 2.40 lakh shares of the firm changed hands amounting to turnover of Rs 27.80 crore. Market cap of the firm rose to Rs 1.41 lakh crore.
The Mumbai-based automaker and BII have executed a binding agreement to invest in the new entity - "EV Co".
According to the agreement, BII will invest up to Rs 1,925 crore in the form of compulsory convertible instruments at a valuation of up to Rs 70,070 crore, resulting in 2.75 per cent to 4.76 per cent ownership in the EV Co, M&M said in a regulatory filing.
The total capital infusion for EV Co is envisaged to be around Rs 8,000 crore/$1 billion between Financial Year 24 and FY 27 for the planned product portfolio, said the Anand Mahindra-led automaker. M&M and BII will work jointly to bring other like-minded investors in the company to match the funding requirement in a phased manner, it added.
Copyright©2022 Living Media India Limited. For reprint rights: Syndications Today