Temasek To Invest INR 1,200 Crore In M&M's EV Business The investment will be in the form of Compulsorily Convertible Preference Shares (CCPS) valued at up to INR 80,580 crore

By Teena Jose

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Twitter

Singapore's auto company Temasek, on Thursday, has announced its plans to invest INR 1,200 crore in Mahindra Electric Automobile Limited, Mahindra & Mahindra's EV business arm, in one or more tranches. As per media reports, the total valuation of the deal, which has been finalised between Mahindra Electric Automobile and Jongsong Investments Pte. Ltd., a unit of Temasek, can go up to INR 80,580 crore.

The investment will be in the form of Compulsorily Convertible Preference Shares (CCPS) valued at up to INR 80,580 crores. It will give Temasek a stake of 1.49-2.97% in Mahindra Electric. Reportedly, the investment by Temasek is part of Mahindra's business plan of bringing in Rs. 10,000 crore worth of investments in its electric vehicle business by FY2027.

The auto company in its regulatory filing said it will also enable Mahindra Electric to onboard more marquee investors to deliver sustainable value over the long term.

"The securities subscription agreement and shareholders' agreement inter alia provide for investment by Temasek of INR 1,200 crore in compulsorily convertible preference shares of MEAL, in one or more tranches, in accordance with the terms and conditions as stipulated in the aforesaid agreement, valuing MEAL upto INR 80,580 crore. The above investment also envisages Temasek having a nominal shareholding of 100 Equity Shares in MEAL," the company said in a regulatory filing.

"Globally known for their 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," said Anish Shah, MD and CEO, Mahindra & Mahindra, in a statement.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.
Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Business Solutions

Business Owners are Cancelling Their OpenAI Membership for This Less Expensive Alternative

1min.AI gives you lifetime access to GPT-4o, Midjourney, Gemini, and more with no recurring costs.

Franchise

The Simple Formula Behind a Top-Ranked Personal Care Franchise

Great Clips ranked #1 in the personal care category and #33 overall on Entrepreneur's 2025 Franchise 500.

News and Trends

Recur Club Announces Credit Offerings for Startups Beyond Series A and SMEs

In FY 24–25, the platform also plans to deploy an additional INR 2000 crores through its Recur Swift program for startups.

News and Trends

What is DeepSeek and Why is it a Big Deal To Tech World?

DeepSeek also knocked Nvidia from its position as the world's most valuable company, from USD 3.5 trillion to USD 2.7 trillion

Leadership

How a Mindfulness Practice Can Help You Beat Tech Overwhelm

This article explores how mindfulness can transform your tech choices, ensuring technology serves your business goals without adding unnecessary complexity.