Temasek Invests Up to $9.8 Billion in Mahindra’s EV Subsidiary, Valuing It at Rs. 80,580 Crore

Mahindra & Mahindra Ltd., a prominent player in the automotive, farm, and services sectors, has reached a binding agreement with Temasek, the global investment firm headquartered in Singapore. The agreement entails Temasek’s investment of Rs. 1200 crores into MEAL (Mahindra Electric Automobile Limited), a company focused on producing four-wheeler (4W) passenger electric vehicles.

This investment will be made through Compulsorily Convertible Preference Shares (‘CCPS’) at a valuation of up to Rs. 80,580 crores, granting Temasek ownership of a 1.49% to 2.97% stake in MEAL. Temasek joins British International Investments (BII) as an investor in MEAL. As a result of this investment, the valuation of Mahindra’s EV subsidiary increases by 15%, rising from up to Rs. 70,070 crores to up to Rs. 80,580 crores. The expertise and global experience of these esteemed investors are expected to provide valuable support to MEAL. The investment aligns with the Mahindra Group’s strategy to minimize dilution.

Established in 1945, the Mahindra Group is a respected multinational federation of companies with a workforce of 260,000 employees spread across more than 100 countries. It holds a leading position in farm equipment, utility vehicles, information technology, and financial services in India and is recognized as the world’s largest tractor company by volume. The group also has a strong presence in renewable energy, agriculture, logistics, hospitality, and real estate. The Mahindra Group is committed to driving positive change in communities and stakeholders, with a focus on leading in ESG (Environmental, Social, and Governance) practices globally, enhancing rural prosperity, and improving urban living.

Temasek, with a net portfolio value of USD 287 billion (SGD 382 billion) as of March 31, 2023, is a global investment company guided by the purpose “So Every Generation Prospers.” The firm maintains overall corporate credit ratings of Aaa/AAA by rating agencies Moody’s Investors Service and S&P Global Ratings, respectively. Headquartered in Singapore, Temasek operates through 13 offices in nine countries, spanning Asia and other regions, furthering its mission to make a positive impact for current and future generations.

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