Singapore investor has strengthened Mahindra’s global strategic partnerships, say Jejurikar
Singapore investor 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 ownership increasing from a 1.49% to 2.97% stake in Mahindra Electric Automobile Limited (MEAL), the four-wheeler (4W) passenger electric vehicle company.
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.
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 minimise dilution.
Dr. Anish Shah, MD & CEO, Mahindra & Mahindra Ltd, said on 3 Aug, “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 US$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.”
Rajesh Jejurikar, Executive Director and CEO, Auto & Farm Sectors, Mahindra & Mahindra, commented, “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 SUV sales from electric vehicles by 2027.”
Founded in 1945, the Mahindra Group is one of the largest and most admired multinational federation of companies with 260,000 employees in over 100 countries.
Temasek is a global investment company with a net portfolio value of US$287 billion as of 31 March 2023. Fiinews.com
