On Thursday, Mahindra Electric Automobile Ltd (MEAL), Mahindra & Mahindra's electric vehicle arm announced that Singapore-based investment firm Temasek would invest Rs 1,200 crore in the company in compulsorily convertible preference shares.
The fresh investment will push MEAL’s valuation by 15% from Rs 70,070 crore to Rs 80,580 crore.
After the fund infusion, Temasek will have a shareholding in MEAL ranging from 1.49-2.97% of the paid-up share capital on a fully diluted basis. Earlier, Mahindra had raised funds from British International Investments (BII).
"The securities subscription agreement and shareholders' agreement inter alia provide for investment by Temasek of Rs 1,200 crore in compulsorily convertible preference shares of MEAL, in one or more tranches, in accordance with the terms and conditions as stipulated in the aforesaid agreement, valuing MEAL upto Rs 80,580 crores. The above investment also envisages Temasek having a nominal shareholding of 100 Equity Shares in MEAL," the company said in a regulatory filing.
Anish Shah, managing director (MD) and chief executive officer (CEO) of Mahindra & Mahindra Ltd., said, "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."
Rajesh Jejurikar, executive director and CEO, Auto & Farm Sectors, Mahindra & Mahindra, said that by having Temasek as an investor, they have strengthened their global strategic partnerships and are targeting 20% to 30% of Mahindra SUVs sales from electric vehicles by 2030.
Temasek Holdings is a global investment company with a net portfolio value of $287 billion as of March 31, 2023.