Tata Motors and Mahindra & Mahindra apply brakes on EV fundraise plans
Plans by Tata Motors and Mahindra and Mahindra (M&M) to sell stakes in their respective electric vehicle (EV) units have stalled over valuation mismatches, causing both to suspend the process, said people aware of the development.
Tata Motors and M&M had carved out their EV arms into separate subsidiaries and raised significant funds through stake sales in 2021 and 2022, respectively, at handsome valuations. However, investor appetite has slackened since, amid rate hikes by the US Fed. The companies are not keen to go ahead with investments unless they are at the right valuation, said the people cited above.
