Mahindra & Mahindra on August 3 informed the stock exchanges that Temasek Holdings Pvt Limited, Singapore's sovereign wealth fund, will be investing up to Rs 1,200 crore in its EV business at a valuation of up to Rs 80,580 crore.
Post the investment, Temasek will have stake in the range of 1.49-2.97 percent in MEAL (Mahindra Electric Automobile Limited), M&M's EV business, on a fully diluted basis, according to the regulatory filing.
Temasek Holdings is a global investment company with a net portfolio value of $287 billion as at 31st March, 2023.
With this investment, Mahindra’s EV subsidiary’s valuation goes up by 15 percent from up to Rs 70,070 crore to up to Rs. 80,580 crore, the automaker added. "The breadth of global experience of these marquee investors will be valuable for MEAL. The amount invested is consistent with the Mahindra Group’s plan to minimize dilution," it further said.
Commenting on the deal, Anish Shah, MD & CEO, Mahindra & Mahindra Ltd., said, “We are extremely delighted to have Temasek as a partner in our electric SUV journey. 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.”
Further, Rajesh Jejurikar, Executive Director and CEO, Auto & Farm Sectors, Mahindra & Mahindra, said, “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.”
Meanwhile, shares of Mahindra & Mahindra on August 3 (Thursday) traded 1.08 percent lower at Rs 1,469.75 apiece on BSE around 1:15 pm.
Recently, in an exclusive interview with Moneycontrol, the global investment giant is planning to invest up to $10 billion in India over the next three years as it bets on stable government policy, attractive demographics and high-quality entrepreneurs. This after recently sealing the biggest private equity deal in the domestic healthcare sector - the acquisition of a majority stake in Dr Ranjan Pai-led Manipal Hospitals for more than $2 billion.
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