Mahindra & Mahindra Ltd. has proposed to invest Rs 875 crore in its subsidiary, Classic Legends Pvt., through existing and new investors.
The company will invest Rs 525 crore, and the balance of Rs 350 crore will be invested by existing shareholders and new investors in CLPL, according to an exchange filing on Wednesday.
The investment will be done over the next two–three years in multiple tranches. This is done in order "to build a strong business that leverages the strengths of M&M and its partners."
After the investment, M&M will continue to hold 60% of the paid-up equity share capital of CLPL.
With brands like Jawa, Yezdi and BSA under its belt, CLPL is mainly engaged in the design, development, sales and marketing of two-wheelers, spares, accessories and related activities. In the last financial year, CLPL posted a revenue from operations of Rs 709.7 crore.
Shares of M&M were trading 2% higher at Rs 1,668.05 apiece on the NSE after the announcement, compared to a 0.1% advance in the benchmark Nifty 50 as of 3.30 p.m.
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