Temasek will invest Rs 1,200 crore in the form of Compulsorily Convertible Preference Shares (CCPS) at a valuation of up to Rs 80,580 crore, 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 crore to up to Rs 80,580 crore, M&M said. Further, it added, 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.
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“We are extremely delighted to have Temasek as a partner in our electric SUV journey. 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,” says Anish Shah, MD and CEO of Mahindra.
Rajesh Jejurikar, Executive Director and CEO, Auto & Farm Sectors, Mahindra & Mahindra 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 the 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.”
Mahindra unveiled five electric SUVs, namely XUV.e8, XUV.e9, BE.05, BE.07, and BE.09 in August 2022 as part of the XUV and the BE brand. These electric SUVs will be built on the INGLO EV platform and will use components from Volkswagen’s MED platform.