- Temasek to have 1.49 to 2.97 per cent stake in MEAL.
- Will invest Rs 1200 crore in the form of CCPS
Mahindra has entered into a binding agreement with Temasek – a Singapore-based global investment firm – for an investment of Rs 1200 crore into MEAL (Mahindra Electric Automobile Limited), the four-wheeler passenger electric vehicles subsidiary.
According to the agreement, Temasek will invest Rs. 1200 crore in the form of Compulsorily Convertible Preference Shares (‘CCPS’) at a valuation of up to Rs. 80,580 crore. This would mean that Temasek will have a 1.49 to 2.97 per cent stake in MEAL. Temasek will join British International Investments (BII) as an investor in MEAL.
Mahindra’s EV subsidiary with the investment:
With this investment, Mahindra’s EV subsidiary’s valuation goes up by 15 per cent from Rs. 70,070 crore to up to Rs. 80,580 crore. 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 minimise dilution. The investment would also be spent on development of the next-generation electric SUVs. Mahindra is targeting at 20-30 per cent of sales to come from electric SUVs by 2027.
