Singaporean state investor Temasek will invest INR 1,200 crore ($145.02 million) into Indian automaker Mahindra & Mahindra Ltd‘s electric vehicle (EV) unit for up to 3 percent stake.

Mahindra & Mahindra said in a statement on Thursday that the firm and Temasek have executed a binding agreement for the investment into Mahindra Electric Automobile Limited (MEAL), the four-wheeler (4W) passenger electric vehicle company.

According to the statement, Temasek will invest INR 1,200 crore in the form of compulsorily convertible preference shares (CCPS) at a valuation of up to INR 80,580 crore ($9.8 billion), resulting in Temasek’s ownership of a 1.49 percent to 2.97 percent 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 percent from up to INR 70,070 crore.

Mahindra & Mahindra said that the breadth of global experience of these marquee investors will be valuable for MEAL, and The amount invested is consistent with the Mahindra Group’s plan to minimize dilution.

“Globally known for their strong governance, Temasek’s investment is a step forward, as we execute our strategy towards future leadership in electric sports utility vehicles (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,” said Dr. Anish Shah, Managing Director and Chief Executive Officer, Mahindra & Mahindra Ltd.

Mahindra & Mahindra Auto and Farm Sectors Executive Director and Chief Executive Officer Rajesh Jejurikar said that Mahindra’s ambition to build a desirable global brand with the reveal of its born EV portfolio based on the INGLO platform in August 2022 in the United Kingdom, is on track for execution.

“By having Temasek as an investor, we have strengthened our global strategic partnerships and are targeting 20 percent to 30 percent of Mahindra SUV sales from EVs by 2027,” he said.

Founded in 1945, the Mahindra Group is a multinational federation of companies with 260,000 employees in over 100 countries.

The firm involves in farm equipment, utility vehicles, information technology and financial services in India.

It has a strong presence in renewable energy, agriculture, logistics, hospitality, and real estate.

Temasek is a global investment company with a net portfolio value of $287 billion as of March 31, 2023. 

The firm has 13 offices in 9 countries around the world: Beijing, Hanoi, Mumbai, Shanghai, Shenzhen, and Singapore in Asia; and London, Brussels, Paris, New York, San Francisco, Washington DC, and Mexico City outside Asia.

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