Temasek to invest ₹1,200 crore in Mahindra Electric to acquire up to 3% stake
₹1,200 crore in its electric vehicle subsidiary Mahindra Electric Automobile Ltd (MAEL). The Indian auto major M&M and Singapore-headquartered Temasek have executed a binding agreement for the investment in the four-wheeler (4W) passenger electric vehicles company. Temasek Holdings will invest the money in the form of Compulsorily Convertible Preference Shares (CCPS) at a valuation of up to ₹80,580 crore.
The investment will result in Temasek’s ownership of a 1.49% to 2.97% stake in Mahindra Electric Automobile Ltd, M&M said in a release. 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 ₹70,070 crore to up to ₹80,580 crore.
The amount invested is consistent with the Mahindra Group’s plan to minimize dilution, it added. Also Read: Adani group company Ambuja Cements acquires Sanghi Industries at enterprise value of ₹5,000 crore “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 2030," said Rajesh Jejurikar, Executive Director and CEO, Auto & Farm Sectors, Mahindra & Mahindra. Upon subscription to CCPS, Temasek would 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, transfer related rights, exit rights, information rights etc.
as stipulated in the agreements. As envisaged in the business plan there will be a Capital Investment Program of ₹10,000 crore cumulatively in MEAL by FY27, M&M said. Temasek Holdings (Private) Limited is a global investment company with a net
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