British DFI, Mahindra to invest in new firm 

The British International Investment, the UK’s Development Finance Institution and impact investor and Mahindra & Mahindra have executed a binding agreement to invest up to USD 250 million each into a wholly owned subsidiary of Mahindra & Mahindra that will be newly incorporated (“EV Co.”).

We are pleased to share that Khaitan & Co acted as the legal counsel to Mahindra & Mahindra (one of the largest multinational federation of companies with 260,000 employees in over 100 countries. The Mahindra Group has a clear focus on leading ESG globally, enabling rural prosperity and enhancing urban living, with a goal to drive positive change in the lives of communities and stakeholders to enable them to Rise) on this transaction.

The deal was led by Partners Ashraya Rao and Vidur Sinha along with their team – Sheldon Dsouza (Senior Associate) and Alister Sequeira (Associate). The core transaction team was assisted by Partners Adheesh Nargolkar and Smriti Yadav on intellectual property aspects.

British International Investment will invest up to INR 1,925 crores in the form of compulsory convertible instruments at a valuation of up to INR 70,070 crores, resulting in 2.75% to 4.76% ownership for British International Investment in the EV Co. 

The EV Co. will focus on four-wheel (4W) passenger electric vehicles. The total capital infusion for the EV Co. is envisaged to be approximately INR 8,000 crores / USD 1 billion between FY 24 and FY 27 for the planned product portfolio.