Indian automaker Mahindra & Mahindra (M&M) announced that it will be investing ₹875 crore along with external investors in Classic Legends Private Ltd (CLPL). Classic Legends owns iconic motorcycle brands including Jawa, Yezdi, and BSA.

The ₹875-crore infusion will be received in one or more tranches, of which ₹525 crore will be invested by M&M, and ₹350 crore will be invested by external investors. The investment will be done over the next two-three years

Classic Legends’ revenue from operations was ₹709.74 crore for the financial year ended on March 31, 2023.

“CLPL will use the proposed investment of ₹875 crore to build a strong business that leverages the strengths of M&M and its partners. The proposed investment in CLPL by the company and certain existing shareholders of CLPL falls within the ambit of related party transactions and would be done on an arm’s length basis,” the company informed in an exchange filing.

After the investment, M&M will continue to hold 60 per cent of its stake in the paid-up equity share capital of Classic Legends.

CLPL’s investment

businessline had earlier reported that Classic Legends will invest ₹1,000 crore over the next three years to ramp up marketing, distribution, and new product development. About 50 per cent of the new investments will be used for rolling out BSA bikes in the international markets, the other half will be used to strengthen the distribution and marketing in India. The company is also ready with its electric motorcycle and is set to launch in the UK soon.