Temasek Invests Rs 1,200 Crore in Mahindra's EV Company MEAL at $9.8 Billion Valuation

4 Aug 2023 , 10:32 AM

Temasek, a Singapore-based investment firm, signs an agreement with Mahindra & Mahindra to invest Rs 1,200 crore in its passenger electric vehicles (EV) company, MEAL. The investment is made through Compulsorily Convertible Preference Shares (CCPS), giving Temasek a stake of 1.49% to 2.97% in the EV unit.

MEAL’s valuation increases by 15%, reaching up to Rs 80,580 crore from the previous Rs 70,070 crore. Temasek joins British International Investments (BII) as an investor in MEAL, with BII having invested Rs 1,925 crore ($250 million) in July 2022 through CCPS.

Mahindra & Mahindra outlines a capital expenditure of approximately Rs 10,000 crore in its EV subsidiaries between FY22 and FY27. Rs 4,000 crore will be invested between FY22 and FY24, with the balance being invested until FY27.

The investment by Temasek and BII strengthens Mahindra’s position in the EV market and aligns with its strategy for electric SUV leadership.

Mahindra & Mahindra expresses optimism about the partnership, stating that the investment showcases the progress made in scaling up their electric SUV portfolio. With this investment, Mahindra aims to build a globally desirable brand in the EV space and contribute to a sustainable future.

 

For feedback and suggestions, write to us at [e-mail]