Temasek invests INR 1200 crore in Mahindra’s EV subsidiary; raises stake

Global investment firm head-quartered in Singapore, Temasek has signed an agreement to invest INR 1,200 crore in Mahindra's electric vehicle subsidiary Mahindra Electric Automobile Limited (MEAL).

"Temasek will invest INR 1,200 crore in the form of Compulsorily Convertible Preference Shares ('CCPS') at a valuation of up to INR 80,580 crore," Mahindra stated in an official release. This raises Temasek's ownership in MEAL from 1.49% to 2.97%. MEAL is the e-4W passenger electric vehicle subsidiary of the multinational conglomerate, Mahindra Group.

"We are extremely delighted to have Temasek as a partner in our electric SUV journey," said Dr. Anish Shah, MD & CEO, Mahindra & Mahindra Ltd."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."

With the latest investment Mahindra's EV subsidiary's valuation has jumped by 15% -- from INR 70,070 crore to up to INR 80,580 crore. Temasek will join British International Investments (BII) as an investor in MEAL.

"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. By having Temasek as an investor, we have strengthened our global strategic partnerships and are targeting 20% to 30% of Mahindra SUV sales from electric vehicles by 2027," commented Rajesh Jejurikar, Executive Director and CEO, Auto & Farm Sectors, Mahindra & Mahindra.