Mahindra & Mahindra announced that Temasek, the sovereign investment firm of Singapore, would be investing Rs 1,200 crore in their four-wheeler passenger electric vehicles arm, Mahindra Electric Automobile. A binding agreement had been executed between the two companies for this investment, valuing the EV arm at Rs 805.80 billion. The investment by Temasek would be in the form of Compulsorily Convertible Preference Shares (CCPS), and it would give Temasek ownership ranging from 1.49% to 2.97% in MEAL.
Temasek would be joining British International Investments (BII) as an investor in MEAL. as a result of this investment, the valuation of Mahindra's EV subsidiary would increase by 15%, going up from up to Rs 700.70 billion to up to Rs 805.80 billion.
Anish Shah, the Managing Director & CEO of M&M, stated that Temasek's investment was a significant step forward as they aimed to lead in electric SUVs. He mentioned that Temasek's reputation for strong governance made this investment noteworthy and emphasised that the valuation of up to $ 9.8 billion reflected the progress Mahindra had made in scaling up their electric SUV portfolio.
M&M also highlighted the value of the global experience brought in by investors like Temasek and BII for MEAL. They mentioned that the amount invested aligned with the Mahindra Group's plan to minimise dilution.
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