Mahindra's 3-wheelers focused EV spinout attracts Rs.600-Cr from IFC

The International Finance Corporation (IFC) is investing INR 600 crore in Mahindra & Mahindra's new "last mile mobility" company, which will focus on manufacturing of Electric 3 wheelers and small commercial vehicles. The investment will be in the form of compulsorily convertible preference shares (CCPS) at an enterprise valuation of INR 6,020 crore, translating to about 9.97% to 13.64% stake for IFC in the new company. The revenue generated by Last Mile Mobility Business of M&M for FY22 was approximately INR 1,287 crore. The deal, which is IFC's first investment in an EV manufacturer in India, is to be completed before September 30. Khaitan & Co. are the legal advisors to Mahindra & Mahindra and Cyril Amarchand Mangaldas to IFC for the transaction.