Temasek to invest Rs 1,200 crore in M&M’s 4W EV arm
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 per cent from up to Rs 70,070 crores to up to Rs 80,580 crore.
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MUMBAI: Automotive biggie Mahindra & Mahindra Ltd and Temasek, the Singapore-headquartered global investment firm, have executed a binding agreement for Temasek to invest Rs 1,200 crore into MEAL (Mahindra Electric Automobile Limited), the four-wheeler (4W) passenger EV company.
Temasek will invest Rs 1,200 crore in the form of compulsorily convertible preference shares (‘CCPS’) at a valuation of up to Rs 80,580 crores, resulting in Temasek’s ownership of a 1.49% to 2.97% 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 per cent from up to Rs 70,070 crores to up to Rs 80,580 crore. The breadth of global experience of these marquee investors will be valuable for MEAL. The amount invested is consistent with the Mahindra Group’s plan to minimise dilution.Anish Shah, MD-CEO, Mahindra & Mahindra, said, “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, ED-CEO, auto and farm sectors, Mahindra & Mahindra, said “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 UK, which is on track for execution. By having Temasek as an investor, we have strengthened our global strategic partnerships and are targeting 20 per cent to 30 per cent of Mahindra SUVs sales from EV by 2027.”
