scorecardresearchM&M shares climb over 5%; hit 52-week high

M&M shares climb over 5%; hit 52-week high

Updated: 08 Jul 2022, 11:10 AM IST
TL;DR.
The Mumbai-based automaker and BII have executed a binding agreement to invest in the new entity -- EV Co.
FILE PHOTO: FILE PHOTO: An employee walks past a Mahindra TUV300 car at a showroom in Mumbai, India, August 30, 2016. Picture taken August 30, 2016. REUTERS/Danish Siddiqui/File Photo

FILE PHOTO: FILE PHOTO: An employee walks past a Mahindra TUV300 car at a showroom in Mumbai, India, August 30, 2016. Picture taken August 30, 2016. REUTERS/Danish Siddiqui/File Photo

(PTI) 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 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 1,191.90 on the BSE.

At the NSE, it climbed 5.43 per cent to 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 1,925 crore in the form of compulsory convertible instruments at a valuation of up to 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. 

First Published: 08 Jul 2022, 11:10 AM IST