World Bank’s IFC To Invest Rs 600 Cr In Mahindra’s Electric Mobility Business
The International Finance Corporation, which is an arm of the World Bank, has decided to invest Rs 600 crore in Mahindra Group's electric mobility business. The investment will help in scaling up electric three-wheelers and small commercial vehicles business to make them more affordable.
The Mahindra Group shared this in a stock exchange filing. The Mahindra Group said that IFC would be investing Rs 600 crore in NewCo, the new subsidiary of Mahindra Group. This would be IFC's first investment in an EV manufacturer company globally, in the form of compulsory convertible instruments at a valuation of up to Rs 6,020 crore.
As per Mahindra, Rs 600 crore investment will result in ownership of between 9.97 per cent to 13.64 per cent for IFC in NewCo.
Mahindra & Mahindra MD and CEO Anish Shah said, “Decarbonising the transport sector is crucial to achieving the climate goals that India has set for itself. IFC, with its focus on sustainability and boosting prosperity, is an ideal partner for us,"
IFC's Regional Director for South Asia Hector Gomez Ang said that India is the largest three-wheeler market globally, and this investment marks a significant step towards scaled domestic production of electric vehicles catering to this segment as well as small commercial vehicles.
"By supporting a leading market player, IFC hopes to encourage other large automotive manufacturers to follow suit, driving EV adoption across India and helping the government deliver on its climate targets," he added.
