Temasek acquire 3 % stake in M&M’s EV company by investing up to Rs 1,200 crore

On August 3, Mahindra & Mahindra told the stock markets that Temasek Holdings Pvt Limited, Singapore's sovereign wealth fund, will invest up to Rs 1,200 crore in its electric vehicle business, with a potential value of up to Rs 80,580 crore.

According to the regulatory filing, Temasek would hold a fully diluted share in MEAL (Mahindra Electric Automobile Limited), M&M's

EV

The manufacturer claimed that the investment will increase the worth of Mahindra's EV business by 15%, from up to Rs 70,070 crore to up to Rs 80,580 crore. "These renowned investors' extensive worldwide expertise will be helpful to MEAL. The Mahindra Group's objective to reduce dilution is commensurate with the amount spent, it added.

Anish Shah, MD and CEO of Mahindra & Mahindra Ltd. commented on the agreement, saying, "We are incredibly thrilled to have Temasek as a partner in our electric SUV adventure. The valuation of up to $9.8 billion is evidence of Mahindra's success in the electric vehicle market and of our efforts to expand our line of electric SUVs.

"By having Temasek as a shareholder, we enhanced our global cooperation and aim to reach 20% to 30% of Mahindra SUV sales from electric vehicles by 2030," noted Rajesh Jejurikar, Executive Director and CEO of Auto & Farm Sectors, Mahindra & Mahindra.

On Thursday, shares of Mahindra & Mahindra traded 1.08 per cent down at Rs 1,469.75 a share on the BSE at 1:15 pm.

The global investment giant recently said in an exclusive interview with Moneycontrol that it plans to invest up to $10 billion in India over the next three years as it hedges against stable government policy, enticing demographics, and elite entrepreneurs. This comes after the $2 billion purchase of the controlling stake in Dr Ranjan Pai's Manipal Hospitals, which was just closed, was the largest private investment deal in the Indian healthcare sector.