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 percent on Wednesday,
but are still down over 6 percent so far this year, compared to a 7 percent
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 percent of total
annual car sales by 2030 from 1 percent 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. © Reuters
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