M&M may raise up to $1.3 billion through stake sale

22 Mar 2023 , 02:00 AM

Automobile maker Mahindra & Mahindra is in advance talks with global investors to raise up to $1.3 billion in multiple tranches over the next two fiscal years. Sources said that the company which is currently valued at over $9.1 billion will raise this amount through stake sale.

Mahindra is preparing for establishing a new EV factory near Pune and developing platforms for its upcoming electric sport vehicles (SUVs) to dominate the sustainable transportation.

The Mahindra group has estimated an investment requirement of at least Rs 10,000 crore for its EV business over the next 2-3 years.

Rajesh Jejurikar, executive director and chief executive of (the auto and farm sector) of M&M, said regarding fundraising, “We are open to raising funds for our electric SUV business from like-minded investors, who espouse similar values and share our vision of bringing authentic and world-class vehicles to our consumers globally.’

“We will bring in external investment only if we find like-minded investors. We have not engaged any investment bankers at this stage,’ Jejurikar added.