Mahindra Last Mile Mobility gets Rs 300 crore from IFC as first tranche of investment
Banking & Finance
Mahindra & Mahindra is setting up a new wholly owned subsidiary for last mile electric mobility in which IFC will invest Rs 600 crore. The subsidiary – Newco – will create the last mile mobility division, which will include three-wheelers (Alpha, Treo, Zor) and four-wheelers small commercial vehicles (Jeeto). IFC's funding "will help enhance last mile connectivity – electric mobility in the passenger and cargo sectors – while enabling the development and manufacturing of new generation products in this sector," M&M said in a statement. The first investment in an EV maker in the country and the first investment in electric three-wheelers globally will be in the form of mandatory convertible devices at a valuation of up to Rs 6,020 crore. The investment of Rs 600 crore will result in IFC gaining ownership between 9.97% to 13.64% in Newco.
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