Mahindra & Mahindra, India's biggest sports utility vehicle maker by revenue, is in advanced talks with British International Investment (BII) and some other global investors to raise up to ₹5,000 crore ($605 million) for its electric vehicles (EV) unit, multiple people aware of development told.

If the discussions on Mahindra Electric Automobile do lead to a favourable conclusion, the British development financier will be making its second-round investment in the Indian conglomerate.

The deal valuation is likely to be worth 10-15% more than the previous round of funding, which had valued Mahindra's EV subsidiary at ₹70,070 crore ($9.1 billion), said one of the sources cited above.

BII had earlier signed an agreement with Mahindra Electric to invest ₹1,925 crore ($250 million) in July 2022 through compulsory convertible preference shares, which would result in a stake of 2.75-4.76%, depending upon milestones achieved.

A similar amount was to be invested by Mahindra in the electric vehicles subsidiary by way of equity.

"Even though we have not appointed a banker to commence fundraising, our EV business continues to attract interest from investors," said a Mahindra spokesperson in an response.