M&M and Temasek have signed an agreement under which the latter will route the investment in Mahindra Electric Automobile (MEAL) in the form of compulsorily convertible preference shares (CCPS) at a valuation of up to Rs 80,580 crore or just under $10 billion. The investment will result in Temasek’s ownership of a 1.49-2.97% 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% to Rs 80,580 crore from Rs 70,070 crore. “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 minimise dilution,” the company said in a statement.

Anish Shah, MD & CEO, Mahindra & Mahindra, said, “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 towards scaling up the electric SUV portfolio.”
Rajesh Jejurikar, executive director and CEO, auto & farm sectors, M&M, said, “We demonstrated Mahindra’s ambition to build a global brand with 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%-30% of Mahindra SUVs sales from electric vehicles by 2027.”