“With this investment, Mahindra’s EV subsidiary’s valuation goes up by 15% from up to ₹70,070 crores to up to ₹80,580 crores. The breadth of global experience of these marquee investors will be valuable for MEAL,” M&M said in a statement.
| Photo Credit: Special arrangement
Mahindra & Mahindra Ltd. and global investment firm Temasek have executed a binding agreement where by Temasek would invest ₹1200 crore into Mahindra Electric Automobile Limited (MEAL), the four-wheeler (4W) passenger electric vehicles company.
The investment would be in the form of Compulsorily Convertible Preference Shares (CCPS) at a valuation of up to ₹80,580 crore, resulting in Temasek owning about 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% from up to ₹70,070 crores to up to ₹80,580 crores. The breadth of global experience of these marquee investors will be valuable for MEAL,” M&M said in a statement.
“The amount invested is consistent with the Mahindra Group’s plan to minimize dilution,” the statement added.
Anish Shah, MD & CEO, M&M said, “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, M&M 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% to 30% of Mahindra SUVs sales from electric vehicles by 2030,” he added.