Temasek to invest Rs 1,200 cr in M&M's EV co, ups stake to 3%
Temasek signed an agreement with automotive major Mahindra & Mahindra to invest Rs 1,200 crore in its passenger electric vehicles (EV) company MEAL at a valuation of $9.8 billion, the company said in a stock exchange notification on Thursday. Temasek will join British International Investments (BII) as an investor in MEAL, the company said in a statement. BII had earlier signed an agreement with Mahindra Electric to invest Rs 1,925 crore ($250 million) in July 2022 through compulsory convertible preference shares, which would result in a stake of 2.75-4.76%, depending upon milestones achieved.
«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,» said Anish Shah, MD & CEO, Mahindra & Mahindra. MEAL’s valuation has risen by 15 per cent from up to Rs 70,070 crore to up to Rs 80,580 crore.
The amount invested is consistent with the Mahindra Group’s plan to minimize dilution, the company 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 UK, which is on track for execution,» said Rajesh Jejurikar, Executive Director and CEO, Auto & Farm Sectors, Mahindra & Mahindra. Mahindra has outlined a capital expenditure of close to Rs 10,000 crore in its EV subsidiaries between FY22 and FY27, the company said in customary disclosures to stock exchanges.
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