UK's BII to invest in new Mahindra EV unit at $9 bln valuation, shares soar

The unit will be wholly owned by Mahindra, the company said in a statement late on Thursday

Mahindra and Mahindra Ltd and British International Investment (BII) will each invest up to $250 million in the automaker's new electric vehicle unit at a valuation of $9.1 billion, sending the Indian company's shares soaring on Friday, Qazet.az reports.

BII will have a 4.8% ownership in the business, which will focus on four-wheel passenger electric vehicles. 

Mahindra's shares rose as much as 5.4% to a record high of 1,194.9 rupees on Friday.

The new EV unit will use the funds to build electric sport-utility vehicles (SUVs) by leveraging Mahindra's broader manufacturing setup as well as its supply chain, dealers and financiers, it said.

"We would expect between 20% to 30% of Mahindra SUVs being electric by 2027," said Rajesh Jejurikar, executive director for Mahindra's auto and farm sectors.