Mahindra EV unit raises funds from Singapore-based Temasek at Rs 80,580 crore valuation
With this investment, Mahindra’s EV subsidiary’s valuation goes up by 15 per cent from up to Rs 70,070 crore to up to Rs 80,580 crore, M&M said.
Mahindra & Mahindra raised Rs 1,200 crore for its electric vehicle unit from Singapore-headquartered global investment firm Temasek at a valuation of up to Rs 80,580 crore, the latest fundraising by the auto maker as it looks to ramp up electric vehicle sales.
As part of the deal, Temasek will invest the amount in Mahindra Electric Automobile Limited (MEAL) in the form of compulsorily convertible preference shares, resulting in Temasek’s ownership of a 1.49-2.97 per cent stake in the four-wheeler passenger electric vehicles company, M&M said in a statement.
"Temasek's investment is a step forward, as we execute our strategy towards future leadership in electric SUVs," said Anish Shah, Managing Director and CEO, Mahindra & Mahindra.
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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 per cent from up to Rs 70,070 crore to up to Rs 80,580 crore, Mahindra & Mahindra said.
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, M&M 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 per cent to 30 per cent of Mahindra SUVs sales from electric vehicles by 2027,” said Rajesh Jejurikar, Executive Director and CEO-Auto and Farm Sectors, Mahindra & Mahindra.
Mahindra & Mahindra shares declined 1.2 per cent to end at Rs 1,468.4 apiece on BSE after the news.