Temasek to invest in M&M EV biz at valuation of upto Rs 80,580 crore

New Delhi

Temasek, the Singapore-headquartered global investment firm, will invest Rs 1200 crore into Mahindra Electric Automobile Limited, a four-wheeler (4W) passenger electric vehicle company, as per a binding agreement between Temasek and automotive major Mahindra & Mahindra. Temasek will invest in the form of compulsory Convertible Preference Shares (‘CCPS’) at a valuation of up to Rs 80,580 crore, resulting in Temasek’s ownership of a 1.49 percent to 2.97 per cent stake in MEAL.
Temasek will join British International Investments (BII) as an investor in MEAL. With this investment, Mahindra’s EV subsidiary’s valuation goes up by 15 percent from up to Rs 70,070 crore to up to Rs 80,580 crore. The breadth of global experience of these marquee investors will be valuable for MEAL. “We demonstrated Mahindra’s ambition to build a desirable global brand with the reveal of our born EV portfolio based on the INGLO platform in August 2022 in the UK, which is on track for execution,” says Rajesh Jejurikar, Executive Director and CEO, Auto & Farm Sectors, Mahindra & Mahindra. “By having Temasek as an investor, we have strengthened our global strategic partnerships and are targeting 20 percent to 30 percent of Mahindra SUV sales from electric vehicles by 2027,” he added.
Globally known for their strong governance, Temasek’s investment comes as Mahindra executes its strategy towards future leadership in electric SUVs. The valuation of up to USD 9.8 billion is testimony to Mahindra’s EV business and the progress made in the journey towards scaling up the electric SUV portfolio.

Temasek will invest in the form of compulsory Convertible Preference Shares (‘CCPS’) at a valuation of up to Rs 80,580 crore, resulting in Temasek’s ownership of a 1.49 percent to 2.97 per cent stake in MEAL