M&M Revises BII's Investment in Mahindra Electric to ₹1,850 Crore

31 Dec 2024 , 04:57 PM

Mahindra & Mahindra Ltd (M&M) and British International Investment Plc (BII) said they have agreed to dilute the final tranche of BII’s proposed investment in Mahindra Electric Automobile Ltd (MEAL).
BII had proposed investing ₹725 crore, but the two have together reviewed the situation and have agreed to bring the final tranche down to ₹650 crore that will be completed by March 31, 2025.

This will increase the overall investment from BII Group, which includes BII and BII India EV LLP, to ₹1,850 crore. For this, BII will hold between 2.64% and 4.58% of MEAL depending on the final share count.

The long-term strategy or business plans of the company would not be affected by the new terms of investment. MEAL, one of the main planks of M&M’s EV strategy, was formed in October 2022. M&M also announced that it would invest ₹12,000 crore in MEAL over the next three years and plans to do so by March 31, 2027.

Earlier decisions made by M&M and BII in the year included agreeing to extend the deadline for the final tranche, after which they reassessed all the options and decided to change their investment. In November, the company introduced its two most electric SUVs for the BE 6 and XEV 9e. Mass production of which is scheduled for early 2025, respectively priced at ₹18.9 lakh and ₹21.9 lakh, all ex-showroom.

To augment its new productions, M&M is committing another ₹4,500 crore investment to produce for these models – part of ₹16,000 crore for this electric vehicle venture between FY 22-27.