Mahindra Electric Automobile Ltd (MEAL), a subsidiary of Mahindra & Mahindra, is to receive an investment of Rs 1,200 crore from Jongsong Investments Pte Ltd - Temasek.
Temasek will invest the amount in the form of Compulsorily Convertible Preference Shares (‘CCPS’), raising its stake in MEAL to 2.97 per cent stake.
Temasek, a global investment firm valued at $287 billion (S$382 billion), will join British International Investments (BII) as an investor in MEAL. With this investment, the Mahindra subsidiary’s valuation will increase 15 per cent to Rs 80,580 crore from Rs 70,070 crore.
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“Globally known for their strong governance, Temasek’s investment is a step forward, as we execute our strategy towards future leadership in electric SUVs,” said Dr. Anish Shah, MD & CEO, of Mahindra & Mahindra Ltd.
The Rs 1,200-crore investment will be made in one or more tranches.
“As envisaged in the business plan, there will be a Capital Investment Program of Rs. 10,000 crore cumulatively in MEAL by FY27. The investment by Temasek, would give it certain rights as a shareholder, including governance and affirmative voting rights, pre-emptive rights to participate in future funding rounds, minority protection rights, transfer-related rights, exit rights and customary information rights,” the company said in a stock exchange filing.
“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 & Farm Sectors, Mahindra & Mahindra.