M&M shares climb over 5 pc; hit 52-week high
Shares of Mahindra & Mahindra (M&M) climbed over 5 per cent in morning trade on Friday after the company and the British International Investment (BII) inked a pact to invest Rs 1,925 crore each in a wholly-owned subsidiary of the homegrown auto major.
The stock jumped 5.16 per cent to its 52-week high of Rs 1,191.90 on the BSE.
At the NSE, it climbed 5.43 per cent to Rs 1,194.90 — its 52-week high.
The Mumbai-based automaker and BII have executed a binding agreement to invest in the new entity — “EV Co”.
According to the pact, BII will invest up to Rs 1,925 crore in the form of compulsory convertible instruments at a valuation of up to Rs 70,070 crore, resulting in 2.75 per cent to 4.76 per cent ownership in the EV Co, M&M said in a regulatory filing on Thursday.
EV Co will focus on four-wheel (4W) passenger electric vehicles, it added.
“We are extremely delighted to have BII as a partner in our SUV electric journey. In BII, we have found a like-minded long-term partner who is committed to combating the climate emergency,” M&M MD & CEO Anish Shah said.
The Mahindra Group aims to be “Planet Positive” by 2040, he noted.
