Temasek to invest INR 1200 crores in Mahindra’s EV subsidiary

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Mahindra & Mahindra Ltd., a prominent player in the automotive, farm, and services industries, has entered into a binding agreement with Temasek, the Singapore-based global investment firm, for an investment in their four-wheeler (4W) passenger electric vehicle subsidiary company, Mahindra Electric Automobile Limited (MEAL). Temasek will invest INR 1,200 crore into MEAL in the form of Compulsorily Convertible Preference Shares (CCPS) at a valuation of up to INR 80,580 crore. This investment will grant Temasek a stake in the range of 1.49% to 2.97% in MEAL.

With this investment, MEAL’s valuation will increase by 15% from the previous valuation of up to INR 70,070 crore, reaching up to INR 80,580 crore. Temasek will join British International Investments (BII) as an investor in MEAL. The involvement of these reputable investors is expected to bring valuable global experience and strategic partnerships to MEAL.

Dr. Anish Shah, MD & CEO, Mahindra & Mahindra Ltd., said, “We are extremely delighted to have Temasek as a partner in our electric SUV journey. Globally known for their strong governance, Temasek’s investment is a step forward, as we execute our strategy towards future leadership in electric SUVs. The valuation of up to $9.8 billion is testimony to Mahindra’s EV business and the progress we have made in the journey towards scaling up the electric SUV portfolio.”

Rajesh Jejurikar, Executive Director and CEO, Auto & Farm Sectors, Mahindra & Mahindra, commented, “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. By having Temasek as an investor, we have strengthened our global strategic partnerships and are targeting 20% to 30% of Mahindra SUV sales from electric vehicles by 2027.”

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