M&M shares pare early gains; settle on flat note

Shares of Mahindra & Mahindra (M&M) on Friday pared all early gains and ended on a flat note amid profit booking.

Earlier in the day, the scrip had gained amid an announcement that impact investor British International Investment (BII) will invest Rs 1,925 crore in Mahindra & Mahindra's new electric vehicle arm.

The stock, which jumped 5.16 percent to its 52-week high of Rs 1,191.90 during the day on the BSE, later wiped out all early gains and ended at Rs 1,132.65 apiece, lower by 0.06 percent.

On the NSE, it settled at Rs 1,130.50 apiece, down 0.25 percent after climbing 5.43 percent to Rs 1,194.90 -- its 52-week high -- earlier in the day.

As per an agreement between the two partners, the new electric vehicle company -- EV Co -- is envisaged to have a total capital infusion of around Rs 8,000 crore/USD 1 billion between the financial year 2024 and fiscal year 2027 for the planned product portfolio.

M&M and BII will invest Rs 1,925 crore each in EV Co, which would focus on four-wheeler passenger electric vehicles, as per the pact.

According to the agreement, 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 late-night regulatory filing on Thursday.