The holding firm Mahindra & Mahindra Ltd. is involved in the production of automobiles.
Farm Equipment, Others, and Automotive are its three operating segments. The sale of vehicles, replacement parts, and associated services make up the Automotive segment. Tractors and replacement components are sold within the Farm Equipment business area. Agri, construction equipment, Powerol, and the parts business unit are all included in the Others sector.
On Thursday, Mahindra & Mahindra Ltd. (M&M) said that Temasek, a worldwide investment corporation, will invest ₹1,200 crore in Mahindra Electric Automobile Ltd. (MAEL), its subsidiary for electric vehicles.
An agreement has been signed between Temasek, a Singapore-based business, and Indian automaker M&M about a binding investment in the four-wheeler (4W) passenger electric car company.
“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% to 30% of Mahindra SUVs sales from electric vehicles by 2027.” – Quote by Mr. Rajesh Jejurikar, Executive Director and CEO, Auto & Farm Sectors, Mahindra & Mahindra.
The funds would be invested by Temasek Holdings at a maximum valuation of ₹80,580 crore as Compulsorily Convertible Preference Shares (CCPS).
According to an announcement from M&M, Temasek will own between 1.49% and 2.97% of Mahindra Electric Automobile Ltd. as a result of the transaction.
Temasek will become a MEAL investor with British International Investments (BII). Mahindra’s EV subsidiary’s worth increases by 15% with this investment, reaching up to ₹80,580 crore from ₹70,070 crore.
It further stated that the investment size aligns with the Mahindra Group’s strategy to reduce dilution.
Temasek would receive certain rights as a shareholder upon subscribing to CCPS, including rights to governance and affirmative vote, rights to minority protection and preemptive participation in future funding rounds, transfer-related rights, exit rights, and information rights, among other rights as outlined in the agreements.
The business plan states that by FY27, a capital investment program of ₹10,000 crore would be implemented in MEAL. stated Mahindra & Mahindra Ltd.
As of March 31, 2023, Temasek Holdings (Private) Limited, a worldwide investment business, has a $287 billion net portfolio value.
In terms of manufacturing volume, M&M is one of India’s major vehicle manufacturers and the world’s largest tractor seller.
