In March 2023, the IFC committed to invest ₹ 600 Crore (in one or more tranches), at a valuation of up to ₹ 6020 crore, in a new company housing the last mile mobility division of Mahindra Group. MLMML was incorporated as a subsidiary of Mahindra & Mahindra and it commenced commercial operations in September 2023, pursuant to closing of Asset Transfer Agreement and Business Transfer Agreements with M&M. The investment, which is IFC’s first in an electric vehicle maker in India, comes amid the push the EV sector is getting from the government.
MLMML has allotted 30,00,000 compulsorily convertible preference shares (CCPS) of Rs. 1,000/- each at par, to IFC for cash. This is for an aggregate consideration of Rs300 crores resulting in IFC having the right to give voting instructions to the company with respect to MLMML to the extent of 5.9% of paid-up equity capital of MLMML until conversion of CCPS. The said allotment is in accordance with the Subscription Agreement and Shareholders Agreement entered by the company with IFC on 22nd March 2023, it said in the notification. With this transaction, MLMML has ceased to be a wholly owned subsidiary of Mahindra with effect from 9th October 2023, while it continues to be a subsidiary of the company.
“This partnership with IFC reflects the shared values and ambitions both entities have demonstrated in their commitment to sustainable, inclusive, and clean mobility solutions,” Mahindra said in the statement. MLMML will accelerate the green transition of the automotive industry in support of India’s climate targets. MLMML will focus on scaling last-mile passenger and cargo transportation solutions. Suman Mishra will lead MLMML as its Managing Director and CEO, it added.
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