M&M EV unit raises $145 mn from Temasek at upto $9.8 billion valuation

livemint.com:

₹1200 crore ($145 million), at a valuation of upto ₹80,580 crore, or $9.8 billion. In its last fundraise round with British International Investment (BII) last year, Mahindra's passenger electric mobility unit, MEAL (Mahindra Electric Automobile Limited) was valued at $9.1 billion. Mint reported in March that Mahindra & Mahindra Ltd was in advanced talks with global investors to raise $1-1.3 billion by selling shares in its electric vehicles (EV) unit in multiple tranches over the next 2-3 years.

"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", M&M said in a press statement.

“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", Rajesh Jejurikar, Executive Director and CEO, Auto & Farm Sectors, Mahindra & Mahindra said. Mahindra is preparing for a future dominated by sustainable transportation by establishing a new EV factory near Pune and developing platforms for its