Temasek, a well-known investment company in Singapore, has strengthened its commitment to the market for electric vehicles by reaching a significant agreement with Mahindra Electric Automobile Limited (MEAL). Temasek is expected to invest a sizeable sum of Rs 1200 crore into MEAL as per the terms of this ground-breaking agreement, increasing its interest in the business to an astonishing range of 1.49 to 2.97 percent.
The capital infusion would be made in the form of Compulsorily Convertible Preference Shares (CCPS), which is a calculated strategic move that adds to MEAL’s lofty valuation of an astonishing Rs. 80,580 crore. In addition to improving MEAL’s financial situation, this strategic partnership signals Temasek’s entry into the electric vehicle market and is in line with the company’s long-term investment plans.
This huge accomplishment follows Mahindra’s unwavering pursuit of revolutionising the electric vehicle industry. Mahindra’s EV subsidiary has seen a 15% increase in valuation, bringing its total worth to up to Rs. 80,580 crore, a significant increase from its prior estimate of Rs. 70,070 crore.
In addition to advancing MEAL’s current endeavours, the funding infusion will also support the development of next-generation electric SUVs. This timely investment strengthens Mahindra’s resolve to generate 20–30% of its sales from electric SUVs by 2027.
By supporting innovation, growth, and eco-aware mobility solutions, Mahindra and Temasek’s strategic relationship represents a significant step towards an electrified and sustainable automotive future.