National, August 3, 2023 – Mahindra & Mahindra Ltd., a leader in automotive, farm and services businesses, and Temasek, the Singapore-headquartered global investment firm, have executed a binding agreement for Temasek to invest Rs. 1200 crores into MEAL (Mahindra Electric Automobile Limited), the four-wheeler (4W) passenger electric vehicles company.
Temasek will invest Rs. 1200 crores in the form of Compulsorily Convertible Preference Shares (‘CCPS’) at a valuation of up to Rs. 80,580 crores, resulting in Temasek’s ownership of a 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 Rs. 70,070 crores to up to Rs. 80,580 crores. The breadth of global experience of these marquee investors will be valuable for MEAL. The amount invested is consistent with the Mahindra Group’s plan to minimize dilution.
Dr. Anish Shah, MD & CEO, Mahindra & Mahindra Ltd., said, “We are extremely delighted to have Temasek as a partner in our electric SUV journey. 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.”
Mr. Rajesh Jejurikar, Executive Director and CEO, Auto & Farm Sectors, Mahindra & Mahindra, commented, ““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.”