Mahindra, a big Indian automobile firm, revealed on May 16 that its investment in Mahindra Electric Automobile Limited (MEAL) shall see the company spending Rs 12,000 crore in the EV unit. Seeding of this amount will be spread over three years and the investment period will end by the end of fiscal 2026-27, i.e., March 31, 2027.
According to them, they believe that they will be able to realize enough revenues from their company\'s operations to fund this major capital expenditure. Since Mahindra estimated that the capital raised last year would be sufficient, the Company doesn’t foresee any need for additional fundraising shortly. According to Mahindra and her auto division have enough operating cash to meet the requirements of its current investments,
Mahindra and BII agreed to expand the time of the project’s ending within the view of any real economic impact study, which BII was going to undertake. Before the end of the year 2024, they plan jointly to decide if it is worth the expenditure by the end of December 2024.
To this date, BII, which is based in the UK, has contributed Rs. 1,2 billion and Temasek, a company that was founded in Singapore, has invested Rs. 300 billion in MEAL. Temasek will put in an additional Rs 900 crore in line with the agreed time up.
In early 2022, BII agreed to foot liabilities of a maximum of up to Rs 1,925 crore to Mahindra new EV subsidiary company engaged in the production and sale of four-wheel passenger electric vehicles. Through this infusion of Rs. 70070 cr, BII will have an option of a per share conversion of compulsory convertible instruments in the company. The mode of investment by BII will be compulsorily convertible bonds. This will permit BII to acquire a sufficient number of shares such that it owns two per cent of the company\'s total holdings of shares. 75% to 4. 76% business shares in the EV startup venture.
Mahindra, on the other hand, estimates to make an aggregate capital commitment of Rs 8,000 crore in 3 years, FY2024 and FY2027 included. The business partners will aim at attracting more market-like- them with Mahindra & BII, for the emerging electric vehicle company.
Mahindra EVOL, a subsidiary of Mahindra Electric Automobile Ltd., had incepted on 25 Oct 2022. For FY 2023-24, the numbers about revenue were Rs 56 cr. Its revenue from operations has not been reported Yea, it did not generate a revenue of 96 Crore, according to the information provided.
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