Singapore’s Temasek to Invest INR 12,000 Cr in Mahindra & Mahindra EV Arm

Singapore's Temasek to Invest INR 12,000 Cr in Mahindra & Mahindra EV Arm

Major automobile firm Mahindra and Mahindra Ltd (M and M) has revealed that  investment firm Temasek, based out of Singapore, will be investing INR 1,200 crore in Mahindra Electric Automobile Ltd (MEAL), which is the Electric Vehicle (EV) subsidiary of Mahindra & Mahindra. The EV arm manufactures four-wheeled EVs. An agreement towards this has been signed between the two firms.

The agreement will pave the way for Temasek to make an investment worth INR 1,200 crore in the form of Compulsorily Convertible Preference Shares (‘CCPS’) at a valuation of up to INR 80,580 crore. As a result of this,  Temasek’s will have an ownership stake of 1.49 per cent to 2.97 per cent in Mahindra Electric Automobile Ltd.

British International Investments (BII) will be joined by Temasek as an investor in MEAL. Last year, Mahindra & Mahindra raised INR 1,925 crores from British International Investment to establish a new four-wheel Passenger Electric Vehicle Co. through Mahindra & Mahindra Ltd.

The said investment will augment the EV arm’s value at INR 70,070 crore to up to INR 80,580 crore.

“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,” M&M MD & CEO, Dr. Anish Shah 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 electric vehicles by 2027,” M&M Auto & Farm Sectors Executive Director and CEO Rajesh Jejurikar said.

In December 2022, Mahindra & Mahindra Ltd (M&M) announced that it would invest INR 10,000 crore to build an electric vehicle manufacturing facility in Pune, Maharashtra.