Mahindra & Mahindra's subsidiary Mahindra Two Wheelers is looking forward to raise Rs 600-700 crore through initial public offering (IPO) route to fund capital investments.
The company is planning to invest about Rs 500 crore in research and development (R&D) facilities over the next five years and launch at least three variants of scooters and one of a motorcycle (the 300 cc Mojo) this year. It has already invested Rs 100 crore in its two-wheeler R&D centre in Pune.
In 2008, Mahindra forayed into the two-wheeler segment, after its board of directors had approved the acquisition of Pune-based Kinetic Motor Company's business assets. The acquisition was carried out through a new company, which was later named Mahindra Two Wheelers.