BENGALURU, March 22 (Reuters) - Indian automaker
Mahindra and Mahindra Ltd is in advanced talks with
global investors to raise between $1 billion and 1.3 billion to
accelerate the expansion of its electric vehicle unit, Mint
reported on Wednesday.
The company plans to raise capital by selling shares in its
unit, currently valued at over $9.1 billion, in multiple
tranches over the next two fiscal years, the report said, citing
people familiar with the matter.
Mahindra did not immediately respond to Reuters' request for
comment.
Shares of Mahindra rose as much as 1.7% on Wednesday, but
are still down over 6% so far this year, compared to a 7% rise
in rival Tata Motors The Mumbai-headquartered conglomerate may raise as much as
$800 million to $1 billion in the first tranche as early as the
first half of financial year 2024, the newspaper said.
Mahindra, which is known for its sports utility vehicles
(SUVs) and jeeps, has stepped up investments to bolster its EV
capacity as the Indian government aims to increase the share of
EVs to 30% of total annual car sales by 2030 from 1% currently.
In December, the company unveiled plans to invest 100
billion rupees ($1.21 billion) to set up an EV manufacturing
plant near the western city of Pune, taking on Tata Motors,
which dominates India's EV market.
Tata Motors is also in talks with sovereign wealth funds and
private equity investors to raise up to $1 billion via a stake
sale in its EV business, Economic Times reported in February.
($1 = 82.6290 Indian rupees)
(Reporting by Dimpal Gulwani; Editing by Sonia Cheema)
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