Mahindra Last Mile Mobility Limited (MLMML) has ceased to be a wholly owned subsidiary of the Mumbai-based Mahindra & Mahindra (M&M), with effect from October 9 2023, following the receipt of the first tranche of an investment of Rs 300 crore from the International Finance Corporation (IFC). It will continue to remain a subsidiary of the company, the auto major said in a regulatory filing on Monday.
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. In March 2023, IFC committed to investing Rs 600 crore in one or more tranches, at a valuation of up to Rs 6020 crore.
As per the company announcement, MLMML has allotted 30,00,000 compulsorily convertible preference shares (CCPS) of Rs 1,000 each at par to IFC for an aggregate consideration of Rs 300 crore. It has resulted in the IFC having the right to give voting instructions to the company with respect to MLMML to the extent of 5.9% of the paid-up equity capital of MLMML until the conversion of CCPS.
MLMML was incorporated on May 29, 2023, as a wholly owned subsidiary of M&M in India to undertake the last-mile mobility business of the company. MLMML, which remains focused on electric 3- and 4-wheelers, offers a wide portfolio of products in various fuel options, including 3-wheelers like Treo, Zor Grand, Alfa, and the 4-wheeler SCV-Jeeto.
M&M stated in March that the total investment of the company in the said business for the year ended March 31, 2022 stood at approximately Rs 850 crore, which constitutes 2.18% of the total net worth of the company.