Mahindra is in early talks with global green funds and private equity firms, the person said, adding that it wants a long-term investor who can help build out its EV business.
Some investors, however, in recent months have shown interest in participating in a funding round of worth around $800 million, two banking industry sources said, adding that they have held talks with the company about such offers.
While Mahindra is not actively looking to raise a higher amount than $250-$500 million, it is not closed to the idea of raising the deal size depending on the terms and valuation, the first source said.
“Mahindra wants to bring a benchmark investor onboard but does not want to dilute a large stake at present,” he said, adding that these plans are at an early stage and subject to changes.
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Mahindra’s new EV unit for which it is raising the funds was valued at $9.1 billion in July after its first raise of $250 million from (BII).
It was not immediately clear what valuation the investors are offering or what the company is seeking for the new round.