Singapore-headquartered global investment firm Temasek has executed a binding agreement to invest Rs 1,200 crore in Mahindra Electric Automobile Ltd (MEAL), the four-wheeler (4W) passenger electric vehicles company.
Temasek will invest the amount in the form of Compulsorily Convertible Preference Shares (CCPS) at a valuation of up to Rs 80,580 crore, resulting in its ownership of a 1.49-2.97% stake in MEAL.
MEAL also has British International Investments (BII) as an investor. With the new investment, Mahindra’s EV subsidiary’s valuation has gone up by 15% from up to Rs.70,070 crore to Rs. 80,580 crore.
In a statement, MEAL said that Temasek is globally known for their strong governance, and its investment is a crucial step in the vehicle company’s strategy towards future leadership in electric SUVs. With Temasek as an investor, MEAL has strengthened its global strategic partnerships and is now targeting 20% to 30% of Mahindra SUVs sales from electric vehicles by 2027.
Founded in 1945, the Mahindra Group is one of the largest multinational companies with 2,60,000 employees in over 100 countries.