Temasek To Invest Rs 1,200 Crore In M&M's EV Business

Singapore-headquartered global investment firm, Temasek is planning to invest Rs 1200 crore in Mahindra Electric Automobile Limited, Mahindra & Mahindra's EV business arm, in one or more tranches, stated the BSE filing of the auto company on Thursday. According to reports, total valuation of the deal, which has been finalised between Mahindra Electric Automobile and Jongsong Investments Pte. Ltd., a unit of Temasek, is expected to go approximately Rs 80,580 crore.

The company has completed a binding agreement with Temasek for the latter to invest Rs 1,200 crore into Mahindra Electric Automobile Ltd (MEAL), valuing the EV arm at Rs 80,580 crore, as per the M&M regulatory filing. Temasek would invest Rs. 1,200 crores in MEAL, in one or more tranches.

After infusion of Rs. 1,200 crores, Temasek will have a shareholding in MEAL in the range of 1.49% to 2.97% in the EV business, added the exchange filing of the company.

Anish Shah, MD & CEO, 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. 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."

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 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."

Current market price of Mahindra & Mahindra share is Rs 1468.35 per share with intraday fall of 1.17%. Mahindra & Mahindra shares declined 4.94% in last 2-weeks, rallied 19% in last 3-months, and gave return of 17% in last 1-year. Mahindra & Mahindra shares zoomed 90% in last 2-years and 146% in last 3-years.

Temasek Holdings is a leading global investment firm with a net portfolio value of $287 billion as of March 31, 2023.