Singapore-based Temasek to invest Rs 1,200 crore in Mahindra Electric at $9.8B valuation

Anand Mahindra-led Mahindra & Mahindra, which operates in sectors including automotive, farm, and services businesses, said Singapore-based Temasek will be investing Rs 1,200 crore in Mahindra Electric Automobile, the four-wheeler (4W) passenger electric vehicle company.

According to the company's statement, Temasek will invest Rs 1,200 crore in the form of Compulsorily Convertible Preference Shares ('CCPS') at a valuation of up to Rs 80,580 crore, resulting in Temasek's ownership of a 1.49% to 2.97% stake in MEAL.

As part of the deal, The investment firm will get certain rights as a shareholder, such as governance and affirmative voting rights, pre-emptive rights to participate in future funding rounds and minority protection rights, as per the agreement.

The deal also increases the valuation of Mahindra's EV subsidiary from Rs 70,070 crore to Rs 80,580 crore. 

Anish Shah, MD & CEO of 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."

Rajesh Jejurikar, Executive Director and CEO of Auto & Farm Sectors, Mahindra & Mahindra, 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 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."

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