Temasek to invest ₹1,200 crore in Mahindra’s passenger EV company MEAL
The Hindu
Mahindra & Mahindra and Temasek have signed a binding agreement for the latter to invest ₹1200 crore in Mahindra Electric Automobile Ltd. (MEAL). This investment will result in Temasek owning 1.49-2.97% stake in MEAL, valuing it up to ₹80,580 crore.
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.”
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