Mahindra & Mahindra Ltd said Thursday the company and British International Investment have mutually agreed to extend the timeframe for the final tranche of the UK firm’s planned investment in the Indian automaker's passenger electric vehicle subsidiary.
BII, the UK’s development finance institution, had in July 2022 agreed to invest Rs 1,925 crore in Mahindra’s EV unit in two stages. The first stage was to be completed by June 30, 2023, and the second tranche closing was expected to happen after completion of certain milestones in 2023-24.
In February 2023, M&M said BII would invest up to Rs 1,200 crore in Mahindra Electric Automobile Ltd by March 31, 2024, and make the balance investment of up to Rs 725 crore by July 1, 2024.
However, the Indian automaker said Thursday the company and BII have again extended the timeframe for the final tranche investment of Rs 725 crore. The two organisations will jointly assess whether additional investment is required by December 31, 2024, M&M said in a stock-exchange filing.
M&M also said it has approved an investment of Rs 12,000 crore in Mahindra Electric to fund its EV business over the next three years. The company said it expects to generate sufficient operating cash to satisfy all its capital investment needs and that it was not looking to raise additional capital.
Apart from BII, M&M had brought Singapore state investment firm Temasek on board as an investor in the EV arm. Temasek agreed to invest Rs 1,200 crore in Mahindra Electric in August last year.
M&M said that Temasek has so far invested Rs 300 crore so far in Mahindra Electric and that it will invest the remaining Rs 900 crore as per the agreed timelines. Temasek’s investment valued Mahindra Electric at Rs 80,580 crore, up from Rs 70,070 crore when BII agreed to invest in 2022.