Classic Legends Pvt Ltd, a Mahindra and Mahindra subsidiary that manufactures iconic motorcycle brands such as Yezdi and Jawa, is set to receive a Rs 875 crore fund infusion, according to a stock exchange filing. Mahindra has agreed to invest Rs 525 crore in one or more tranches of CCPS (compulsorily convertible preference shares) and equity.
Classic Legends' existing shareholders and new investors will invest an additional Rs 350 crore in the motorcycle manufacturing firm in one or more tranches.
Following the new fund infusion, which is expected to be completed by March 15, 2025, Mahindra will retain a 60% stake in Classic Legends, which will continue to be its subsidiary.
The latest round of funding comes on the heels of Classic Legends' plans to invest Rs 1,000 crore until FY26 in order to catch up in the middle weight, lifestyle motorcycle market in India and tap burgeoning demand for such models in overseas markets.
The funds will be used for, among other things, tooling up new products, marketing, creating distribution networks for international markets, and new product development. Classic Legends cofounder Anupam Thareja told ET in September. This sum, he said, would come from a mix of internal accruals, existing shareholders, and external investors.