Temasek Holdings Limited, a global investment company that belongs to the Government of Singapore, has revealed its decision to invest Rs 1200 crore in Mahindra & Mahindra's electric mobility division. The significant part of this announcement is that Temasek's investment will take the form of Compulsorily Convertible Preference Shares (CCPS) and will be valued at up to Rs. 80,580 crore. This will result in Temasek owning a stake in Mahindra Electric that ranges from 1.49 per cent to 2.97 per cent.
Commenting on the development, 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 its 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.”
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At the same time, 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 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 SUVs sales from electric vehicles by 2027.”
By joining British International Investments (BII) as an investor in Mahindra Electric, Temasek has reportedly contributed to a 15 per cent increase in the valuation of Mahindra's electric vehicle subsidiary. This valuation has risen from a previous range of up to INR 70,070 crore to a new range of up to Rs. 80,580 crore. The amount invested aligns with Mahindra Group's strategy to minimise any reduction in its ownership stake.
Currently, Mahindra’s electric range in passenger vehicles consists solely of the XUV 400. However, the brand promises to introduce more battery-electric vehicles in the future.
