Mahindra & Mahindra pushes deadline for completion of investment in EV arm

22 Feb 2023 , 12:41 PM

On Tuesday, Mahindra and Mahindra announced that it had entered into an asset transfer agreement with its wholly-owned subsidiary EV subsidiary for the transfer of certain identified assets (capital work in progress) related to four-wheeler passenger electric vehicles.

The company’s total investment in the aforementioned assets, classified as ‘capital work in progress,’ for the fiscal year 2022 is approximately Rs230 crore or 0.6% of the company’s net worth.

Mahindra Electric Automobile Ltd. (MEAL) was established in October 2022 as a wholly-owned subsidiary.

The company signed a share purchase agreement with British International Investment Plc for a Rs1,925 crore investment in MEAL.

Mahindra and Mahindra, as well as British International Investment (BII), will each invest Rs1,925 crore in Mahindra Electric Automobile Ltd. (MEAL).

The investments were to be made in two tranches, with the first tranche of Rs1,200 crore to be invested by June 2023. It is now extended until March 31, 2024.

The second tranche of Rs725 crore will now be completed by July 1, 2024, subject to the achievement of the milestones.

At around 12.36 PM, Mahindra & Mahindra was trading 1.22% lower at Rs1,335.35, against the previous close of Rs1,351.85 on NSE. The counter touched an intraday high and low of Rs1,352.85 and Rs1,333.10 respectively.

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