The shares of this multinational automotive company gained up to 1.18 percent after the company executed a binding agreement for India Japan Fund (IJF) to invest Rs. 400 Crore in Mahindra Last Mile Mobility Limited (“MLMML”).
With a market capitalization of Rs 2.03 lakh crore, the shares of Mahindra & Mahindra Ltd were trading at Rs 1,639.20 per share, increasing around 0.49 percent as compared to the previous closing price of Rs 1,631.25 apiece.
According to the company filing, Mahindra & Mahindra Ltd executed a binding agreement for India Japan Fund (IJF) managed by National Investment and Infrastructure Fund Limited (“NIIF”) to invest Rs. 400 Crore in Mahindra Last Mile Mobility Limited (“MLMML”), a subsidiary of the company.
Furthermore, IJF is NIIF’s first bilateral fund, with a corpus of Rs 4,900 crores, with the Government of India (“GoI”) contributing 49 percent and the Japan Bank for International Cooperation (“JBIC”), a policy-based financial institution wholly owned by the Japanese government, contributing the remaining 51 percent.
In addition, the fund invests in environmental sustainability and low-carbon emission methods, as well as boosting Japanese firms’ interests in India. The investment in MLMML will be IJF’s first since the fund was established in August 2023.
Looking into Mahindra & Mahindra’s performance, revenue increased by 15 percent from Rs 29,870 crore in Q2 FY23 to Rs 34,436 crore in Q2 FY24. During the same period, net profit decreased by 17 percent, from Rs 3,021 crore to Rs 2,484 crore.
M&M Ltd.’s property, plant, and equipment (including capital projects in progress) was Rs 14,000 crore as of March 31, 2023. In FY23, M&M spent Rs 3,431 crore on net capital expenditure, with the primary focus on new product development.
For the ninth year in a row, M&M maintained its lead in the LCV 3.5T sector, with a 45.5 percent market share. This year, the business reinforced its leading position in the light commercial vehicle category by redesigning the whole Pik-Up lineup to bring major value enhancements.
Mahindra & Mahindra Ltd is one of India’s most diverse vehicle companies, offering 2- and 3-wheelers, PVs, CVs, tractors, and earthmovers.
Written by:- Abhishek Singh
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