BENGALURU: Indian automaker Mahindra and Mahindra Ltd said on Wednesday that World Bank’s private investment arm, International Finance Corp (IFC), will invest 6 billion rupees ($72.58 million) in the company’s last mile electric mobility unit.

The investment, which will be in the form of compulsory convertible instruments, will value the unit at 60.20 billion rupees.

IFC will own about a 9.97%-13.64% stake in the newly formed company. The new unit will house the last mile mobility division, including three-wheeler and four-wheeler small commercial vehicles, Mahindra said.

The investment, which is IFC’s first in an electric vehicle maker in India, comes as the sector is receiving a push from the government. Indian automakers and startups, such as Tata Motors, ElectricPe and Yulu, are jumping into the space and attracting multiple investments.

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IFC’s financing will help scale up electric mobility in the last mile connectivity, as well as in the development and manufacturing of new generation products, Mahindra said in an exchange filing.

Shares of Mahindra were up as much as 1.7%, posting their sharpest intraday percentage gain in nearly three weeks.