M&M rises on getting nod to incorporate subsidiary to undertake 4 Wheel Passenger Electric Vehicles Business
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Mahindra & Mahindra is currently trading at Rs. 1134.85, up by 1.50 points or 0.13% from its previous closing of Rs. 1133.35 on the BSE.
The scrip opened at Rs. 1180.25 and has touched a high and low of Rs. 1191.90 and Rs. 1127.00 respectively. So far 364181 shares were traded on the counter.
The BSE group 'A' stock of face value Rs. 5 has touched a 52 week high of Rs. 1,191.90 on 08-Jul-2022 and a 52 week low of Rs. 671.00 on 08-Mar-2022.
Last one week high and low of the scrip stood at Rs. 1191.90 and Rs. 1078.00 respectively. The current market cap of the company is Rs. 140903.44 crore.
The promoters holding in the company stood at 19.47%, while Institutions and Non-Institutions held 66.15% and 14.37% respectively.
Mahindra & Mahindra (M&M) has received approval to incorporate wholly owned subsidiary -- EVCo to undertake the 4 Wheel Passenger Electric Vehicles Business of the Company. The company also received approval to sell/ transfer/ Hiving off of identified assets relating to the 4 Wheel Passenger Electric Vehicles Business of the Company to EVCo. The board of directors also approved execution of a Securities Subscription Agreement and Shareholders’ Agreement with British International Investment (BII), whereby the Company and BII have agreed to invest upto Rs 1925 crore each in the EVCo, in two tranches subject to the terms and conditions as stipulated in the aforesaid agreement. The Board of Directors of the Company at its meeting held on July 07, 2022 has approved the same.
Further, the company and British International Investment (BII), have executed a binding agreement to invest up to Rs 1,925 crore each into a wholly owned subsidiary of M&M that will be newly incorporated (EVCo). 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% to 4.76% ownership for BII in the EVCo. The EVCo will focus on four-wheel passenger electric vehicles.
M&M is the flagship company of the Mahindra Group, a multinational conglomerate based in Mumbai, India. Amongst the various business interests of its parent group, the company is mainly involved in the automobile manufacturing. It is one of the leading auto companies of India.
