ECONOMY

M&M – Equity Infusion At A ‘Too Good’ To Be True Valuation: Nirmal Bang

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Mahindra and Mahindra Ltd. has incorporated a wholly-owned subsidiary to commence four-wheeler electric vehicles business through EVCo. EVCo will be an asset-light company and leverage synergies of M&M.

Manufacturing and sourcing of EVs will be done by M&M. EVCo will use full ecosystem of M&M, including dealers, suppliers etc. M&M has also tied up with VolksWagen for the MEB electric platform for EVs (including batteries, motors etc).

M&M has brought in financial investor British International Investment in EVCo, which will invest Rs 1,925 crore ($250 million) in two tranches – first Rs 1,200 crore and the balance after achieving certain milestones, for a 2.75% to 4.76% stake in the new entity (EVCo).

M&M will also invest identical amount in EVCo. Investment by BII will be in the compulsorily convertible preference shares of EVCo. On a fully diluted basis, the investment is valued at Rs 70,070 crore.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.



Most Related Links :
honestcolumnist Governmental News Finance News

Source link

Back to top button