Singapore’s sovereign investment firm Temasek has agreed to invest Rs 1,200 crore in Mahindra Electric Automobile Ltd (MEAL), the four-wheeler passenger electric vehicles arm of Mahindra & Mahindra (M&M), the Indian auto major announced on Thursday.
The investment will be made in the form of Compulsorily Convertible Preference Shares (CCPS) at a valuation of up to Rs 80,580 crore, resulting in Temasek’s ownership in a range of 1.49 percent to 2.97 percent in MEAL, M&M said in a regulatory filing.
A boost for Mahindra’s EV ambitions
The deal marks a 15 percent increase in MEAL’s valuation from up to Rs 70,070 crore to up to Rs 80,580 crore, reflecting the growing confidence of global investors in Mahindra’s EV business and its strategy to scale up its electric SUV portfolio.
M&M Managing Director & CEO Anish Shah 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 USD 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 Executive Director and CEO, Auto & Farm Sectors Rajesh Jejurikar said, “By having Temasek as an investor, we have strengthened our global strategic partnerships and are targeting 20 percent to 30 percent of Mahindra SUVs sales from electric vehicles by 2030.”
Temasek joins BII as an investor in MEAL
Temasek will join British International Investments (BII) as an investor in MEAL. In July last year, M&M had announced an investment of up to Rs 1,925 crore by BII in MEAL.
The amount invested by Temasek is consistent with the Mahindra Group’s plan to minimise dilution. M&M said the breadth of global experience of these marquee investors – Temasek and BII – will be valuable for MEAL.
A snapshot of the deal
| Investor | Amount | Valuation | Stake |
|---|---|---|---|
| Temasek | Rs 1,200 crore | Up to Rs 80,580 crore | 1.49% – 2.97% |
| BII | Up to Rs 1,925 crore | Up to Rs 70,070 crore | NA |
About Temasek and MEAL
Temasek is a global investment company headquartered in Singapore. It has a net portfolio value of S$381 billion (USD 283 billion) as of March 31, 2023. Its portfolio covers a broad spectrum of industries: financial services; telecommunications, media & technology; transportation & industrials; consumer & real estate; life sciences & agribusiness; as well as energy & resources.
MEAL is a subsidiary of M&M that focuses on four-wheeler passenger electric vehicles. It has launched several models such as e2oPlus, eVerito and eKUV100. It also plans to launch the electric version of its popular SUV XUV300 by early next year.
