Temasek To Invest Rs 1,200 Crore In M&M's EV Arm, Valuation Jumps 15%
Singapore-headquartered investment firm Temasek will invest Rs 1,200 crore in Mahindra & Mahindra Ltd.'s passenger electric vehicle arm, the SUV maker said in a press release on Thursday.
The investment will be in the form of compulsorily convertible preference shares and will give the firm 1.49-2.97% stake in Mahindra Electric Automobile Ltd., M&M's subsidiary that makes electric passenger vehicles.
Temasek joins British International Investment as an investor in the company. The firm's investment values the electric vehicle company at Rs 80,580 crore, a rise of 15% from the valuation at the time of BII's investment.
The amount invested is consistent with the Mahindra Group's plan to minimise dilution, M&M said.
BII signed an agreement to invest Rs 1,925 crore in the EV company last year for a 2.75-4.76% stake.
"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," Anish Shah, managing director and chief executive officer of M&M, said in a statement.
Last year, Rajesh Jejurikar, executive director and chief executive officer of the company's auto and farm segment, had told BQ Prime that it planned on raising additional funds but was not in a rush to complete the process.
The company currently has the XUV400 in its electric vehicle portfolio and aims to generate 20–30% of its sales from EVs by 2027.
The XUV 700 maker has already announced five new electric SUVs for the Indian market under two brands.
The five SUVs will include the XUV.e8 and the XUV.e9 under the existing XUV badge, with a twin-peak logo in copper. The rest will be under a new electric-only brand ‘BE': the BE.05, BE.07 and BE.09.
Mahindra plans to invest $1 billion, or about Rs 8,000 crore, on its electric vehicle business between FY24 and FY27.
The automaker also announced a new INGLO EV platform. All EVs, including the five planned models, will be built on a platform that allows modular and scalable design along with a significant reduction in underbody weight.
-
Signature Play: The Classic Cocktail Is Dead. Or Is It?
Classic cocktails are disappearing from India's cocktail menus. But they're still being ordered, taught to bartenders and borrowed from. So, who's really having the last drink?
-
A New Samvat Wishlist: Inclusive Prosperity And Human Development
India has strengthened its economic foundations through infrastructure, digital access and enterprise. Its next growth chapter must deepen productivity, create better livelihoods and widen participation in prosperity.
-
Love, Sex Aur Dhokha: The Audacious Plot To Spy On Jensen Huang
A Taipei dinner, a Singapore chip buyer and a suspected Chinese asset: inside the alleged spy operation that got close to NVIDIA's Jensen Huang.
-
Ten Things I Learnt This Samvat
Patience can be a trap. Cheap stocks can stay cheap. Leverage can wipe you out. What did Samvat 2082 teach us? Niraj Shah writes on 10 lessons from the year gone by.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
