M&M hits a new high

Mahindra & Mahindra (M&M), which had closed yesterday at Rs.1133.35, opened higher today at Rs.1180.25 and rose to hit an all-time high at Rs.1191.90. It has come off the highs now and is almost back to its close of yesterday.

The stock hit a high after the company announced that British International Investment (BII) would invest up to Rs 1,925 crore or $250 million into a new electric passenger vehicle company to be set up by the Indian auto major. 

They have executed a binding agreement to invest in the new entity - "EV Co".

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 in the EV Co.

The total capital infusion for EV Co is envisaged to be around Rs 8,000 crore/$1 billion between Financial Year 24 and FY 27 for the planned product portfolio.