Mahindra & Mahindra Secures ₹300 Cr Investment From International Finance Corporation For Mahindra Last Mile Mobility

Mahindra and Mahindra Limited on Monday, through an exchange filing informed about execution of Subscription Agreement and Shareholders Agreement by the Company with International Finance Corporation (IFC), whereby IFC had agreed to invest upto Rs 600 Crores in Compulsorily Convertible Preference Shares (CCPS) of the NewCo i.e. Mahindra Last Mile Mobility Limited (MLMML), in one or more tranches in accordance with the terms and conditions as stipulated in the aforesaid Agreements.

The said letter also mentioned that upon subscription to CCPS, IFC would get certain rights such as right to give voting instructions to the Company upto 11.8 percent of the paid-up equity capital of MLMML in tranches until conversion of CCPS, the company announced through an exchange filing.

The Company has received an intimation from MLMML on 9th October, 2023 that it has allotted 30,00,000 CCPS of MLMML of Rs 1,000 each at par, to IFC for cash, for an aggregate consideration of Rs 300 crores resulting in IFC getting the right to give voting instructions to the Company with respect to MLMML to the extent of 5.9 percent of paid-up equity capital of MLMML until conversion of CCPS.

Consequently, MLMML has ceased to be a wholly owned subsidiary of the Company with effect from 9th October, 2023, while it continues to be a subsidiary of the Company.

Mahindra and Mahindra Limited shares

The shares of Mahindra and Mahindra Limited on Monday at 12:12 pm IST were at Rs 1,530, down by 1.22 percent.