MEAL is a wholly-owned subsidiary of M&M which is into making four wheeled electric vehicles (EV).

According to M&M, a binding agreement for this purpose has been signed with Temsek.

As per the agreement, Temasek will invest Rs 1,200 crore in the form of Compulsorily Convertible Preference Shares ('CCPS') at a valuation of up to Rs 80,580 crore, resulting in Temasek’s ownership of a 1.49 per cent to 2.97 per cent stake in MEAL.

Temasek will join British International Investments (BII) as an investor in MEAL.

With this investment, Mahindra’s EV subsidiary’s valuation goes up by 15 per cent from up to 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, M&M said in a statement.

"We are extremely delighted to have Temasek as a partner in our electric SUV journey. 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," M&M MD & CEO, Dr. Anish Shah said.

"We demonstrated Mahindra’s ambition to build a desirable global brand with the reveal of our born EV portfolio based on the INGLO platform in August 2022 in UK, which is on track for execution. By having Temasek as an investor, we have strengthened our global strategic partnerships and are targeting 20 per cent to 30 per cent of Mahindra SUVs sales from electric vehicles by 2027," M&M Auto & Farm Sectors Executive Director and CEO Rajesh Jejurikar said.