Mahindra & Mahindra on Thursday said Singapore's sovereign investment firm Temasek will invest Rs 1,200 crore in its four-wheeler passenger electric vehicles arm -- Mahindra Electric Automobile Ltd.
The company has executed a binding agreement with Temasek for the latter to invest Rs 1,200 crore into Mahindra Electric Automobile Ltd (MEAL), valuing the EV arm at Rs 80,580 crore, M&M said in a regulatory filing.
Under the agreement, Temasek will invest the sum 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 per cent to 2.97 per cent in MEAL, it added.
"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 per cent from up to Rs 70,070 crore to up to Rs 80,580 crore," the company said.
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 said the breadth of global experience of these marquee investors -- Temasek and BII, will be valuable for MEAL. The amount invested is consistent with the Mahindra Group's plan to minimise dilution.
"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% to 30% of Mahindra SUVs sales from electric vehicles by 2027," M&M Executive Director and CEO, Auto & Farm Sectors Rajesh Jejurikar said.
In July last year, M&M had announced an investment of up to Rs 1,925 crore by BII in MEAL.