Mahindra and Mahindra revealed that it had signed an asset transfer agreement with its wholly-owned EV subsidiary. It will order to transfer a number of identified assets related to four-wheeled passenger electric vehicles.
Mahindra Electric Automobile Ltd. (MEAL), the wholly-owned subsidiary, was established in October 2022. By June 2026, all remaining assets will be given to the subsidiary. The company will invest a total of about 230 crores in the aforementioned assets. It is categorized as “capital work in progress” and represents 0.6 percent of the company’s net worth.
“The total Investment of the Company in the said assets classified as capital work in progress as per the audited Financial Statements for the year ended 31st March 2022 is approximately Rs. 230 crores, which constitutes 0.6% of the total net worth of the Company as of 31st March, 2022,” said Mahindra and Mahindra in its filing.
Mahindra & Mahindra stated in July of last year that they planned to separate the company’s four-wheel passenger EV business assets into a new unit called MEAL.
With British International Investment Plc, the company had entered into a share purchase agreement for investments totaling 1,925 crore in MEAL.
“The investment of upto Rs.1,925 crores in EVCo by the Company and BII each would take place in two or more tranches i.e. investment of upto Rs. 1,200 crores will happen on fulfillment of conditions precedent and is expected to be completed not later than 31st March 2024 and the balance investment of upto Rs. 725 crores would be based on the milestones being achieved by 1st July 2024,” the filing added. The company’s scrip was trading 0.44 percent down at ₹1,345.85 on BSE.
