BII To Invest Rs 650 Crore In Mahindra Electric As Final Payment Tranche

British International Investment Plc. or BII will infuse Rs 650 crore in Mahindra Electric Automobile Ltd. or MEAL — a subsidiary of Mahindra and Mahindra as part of their final tranche of payment.

Based on the joint assessment and other requirements of MEAL, BII decided to reduce its investment from Rs 725 crore to Rs 650 crore, according to an exchange filing on Monday.

After investing the said amount, British International Investment's total outlay in the subsidiary stands at Rs 1,850 crore taking its shareholding in the range of 2.64% to 4.58% in MEAL.

Earlier in May, Mahindra and Mahindra approved BII's investment of Rs 1,200 crore in its subsidiary to support its EV journey over the next three years.

Additionally, Temasek through its arm, Jongsong Investments Pte Ltd. had injected Rs 300 crore in MEAL. It will be "investing the balance Rs 900 crore as per the agreed timelines."

Mahindra & Mahindra's net profit rose by 13% to ₹3,841 crore for the second quarter of the fiscal 2025, while its revenue increased to Rs 27,553 crore for the July-September quarter of the current financial year 2025.

The automobile manufacturer posted earnings before interest, tax, depreciation, and amortisation of Rs 3,903 crore, representing a 4% rise for the three months ended Sept. 30, 2024, while its Ebitda margin expanded by 30 basis points to 14.2% for the second quarter of the previous fiscal 2025.

Shares of Mahindra & Mahindra closed 1.53% lower at 3,002.90 per share on the National Stock Exchange. In contrast, the benchmark Nifty fell by 0.71%. The stock has risen 76.30% in the last 12 months and 73.64% on a year-to-date basis.

Out of the 42 analysts monitoring the company, 37 have a 'buy' rating on the stock, four maintain 'hold,' and one recommends a 'sell' rating on the stock, according to Bloomberg data. The average of 12-month analysts' price targets suggests a potential upside of 13.3%.