Temasek, the Singapore-based global investment firm, is set to invest in Mahindra Electric Automobile Limited (MEAL), Mahindra & Mahindra’s electric vehicle (EV) subsidiary, at a significant valuation of up to Rs 80,580 crores. The binding agreement between Mahindra & Mahindra Ltd. and Temasek involves a Rs. 1200 crore investment by the latter in the form of Compulsorily Convertible Preference Shares (CCPS). This will result in Temasek holding a 1.49% to 2.97% stake in MEAL.
The investment by Temasek adds to British International Investments (BII) as an investor in MEAL. As a result of this infusion, the valuation of Mahindra’s EV subsidiary increases by 15%, rising from up to Rs. 70,070 crores to up to Rs. 80,580 crores. This development is seen as a significant step forward for Mahindra in its electric SUV journey.
Dr. Anish Shah, the MD & CEO of Mahindra & Mahindra Ltd., expressed his delight in having Temasek as a partner in their electric SUV endeavors. Temasek’s reputation for strong governance and its investment is seen as a crucial milestone in Mahindra’s strategy to lead in the electric SUV segment. The substantial valuation of $9.8 billion showcases the progress made by Mahindra’s EV business in scaling up its electric SUV portfolio.
Mr. Rajesh Jejurikar, the Executive Director and CEO of Auto & Farm Sectors at Mahindra & Mahindra, highlighted the ambition of Mahindra to establish a desirable global brand. He mentioned the reveal of their EV portfolio based on the INGLO platform in the UK in August 2022, which is on track for execution. With Temasek’s investment, Mahindra has further strengthened its global strategic partnerships, aiming to achieve 20% to 30% of SUV sales from electric vehicles by 2030.
The investment by Temasek signifies a vote of confidence in Mahindra’s electric vehicle business and its potential for future growth. With the expertise and backing of marquee investors like Temasek and BII, MEAL is expected to make significant strides in the electric vehicle market, establishing Mahindra as a key player in the EV segment.
