M&M shares climb over 5 pc; hit 52-week high

Shares of Mahindra & Mahindra (M&M) climbed over 5 percent in morning trade on Friday after the company and the British International Investment (BII) inked a pact to invest Rs 1,925 crore each in a wholly-owned subsidiary of the homegrown auto major.

The stock jumped 5.16 percent to its 52-week high of Rs 1,191.90 on the BSE.

At the NSE, it climbed 5.43 percent to Rs 1,194.90 -- its 52-week high.

The Mumbai-based automaker and BII have executed a binding agreement to invest in the new entity -- ''EV Co''.

According to the pact, 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 percent to 4.76 percent ownership in the EV Co, M&M said in a regulatory filing on Thursday.

EV Co will focus on four-wheel (4W) passenger electric vehicles, it added.

''We are extremely delighted to have BII as a partner in our SUV electric journey. In BII, we have found a like-minded long-term partner who is committed to combating the climate emergency,'' M&M MD & CEO Anish Shah said.

The Mahindra Group aims to be ''Planet Positive'' by 2040, he noted.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)