Mahindra & Mahindra Limited (NSEI:M&M) is in talks with global investors to raise between $250 million and $500 million to accelerate its plans to build electric vehicles (EVs), a source with direct knowledge of the matter told Reuters. Mahindra is in early talks with global green funds and private equity firms, the person said, adding that it wants a long-term investor who can help build out its EV business. Some investors, however, in recent months have shown interest in participating in a funding round of worth around $800 million, two banking industry sources said, adding that they have held talks with the company about such offers.

While Mahindra is not actively looking to raise a higher amount than $250-$500 million, it is not closed to the idea of raising the deal size depending on the terms and valuation, the first source said. "Mahindra wants to bring a benchmark investor onboard but does not want to dilute a large stake at present," he said, adding that these plans are at an early stage and subject to changes.