Temasek to Inject Funds into Mahindra’s Electric Vehicle Arm, Valuing It at Potential INR 80,580 Crore or USD $9.8 Billion


Mahindra & Mahindra Ltd., a frontrunner in automotive, agricultural, and service enterprises, has formally entered a definitive arrangement with Temasek, the internationally operating investment conglomerate headquartered in Singapore. This strategic agreement entails Temasek’s infusion of INR 1,200 crore into MEAL (Mahindra Electric Automobile Limited), the esteemed manufacturer of four-wheeler (4W) electric passenger vehicles.

Temasek is set to make a strategic investment of INR 1,200 crore in Compulsorily Convertible Preference Shares (CCPS) at an impressive valuation of potentially up to INR 80,580 crore. This move will grant Temasek a noteworthy ownership stake ranging from 1.49% to 2.97% in MEAL, Mahindra Electric Automobile Limited. Joining forces with British International Investments (BII), Temasek becomes a significant investor in MEAL. 

Notably, this infusion leads to a 15% surge in Mahindra’s EV subsidiary’s valuation, soaring from up to INR 70,070 crore to an impressive up to INR 80,580 crore. The combined wealth of experience from these distinguished investors is poised to greatly benefit MEAL. This investment aligns seamlessly with the Mahindra Group’s strategic intent to mitigate dilution.

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Dr. Anish Shah, MD & CEO, Mahindra & Mahindra Ltd., said, “We are extremely delighted to have Temasek as a partner in our electric SUV journey. Globally known for their strong governance, Temasek’s investment is a step forward, as we execute our strategy towards future leadership in electric SUVs. 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.

Rajesh Jejurikar, Executive Director and CEO, Auto & Farm Sectors, Mahindra & Mahindra, commented, “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 the UK, which is on track for execution. By having Temasek as an investor, we have strengthened our global strategic partnerships and are targeting 20% to 30% of Mahindra SUV sales from electric vehicles by 2027.”

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