Mahindra & Mahindra and Temasek have executed a binding agreement for the Singapore-headquartered global investment firm to invest INR 1,200 crore into MEAL (Mahindra Electric Automobile Limited), the four-wheeler passenger electric vehicles company.
This amount will be invested in the form of Compulsorily Convertible Preference Shares (CCPS) at a valuation of up to INR 80,580 crore, which will result in Temasek owning 1.49% to 2.97% stake in MEAL. Earlier in February this year, British International Investments (BII) had announced investments of INR 1,925 crore in MEAL.
Temasek’s investment takes the valuation of Mahindra’s EV subsidiary up by 15% from INR 70,070 crore to INR 80,580 crore. The global investment company’s net portfolio was valued at $287 billion as of March 31, 2023.
Expressing his delight to have Temasek invest in MEAL, Dr Anish Shah, MD & CEO, Mahindra & Mahindra, said, “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.”
“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,” said Rajesh Jejurikar, Executive Director and CEO, Auto & Farm Sectors, Mahindra & Mahindra.
Jejurikar further said that 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 2027.”