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.
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