Temasek to invest $145 million in India’s Mahindra Electric

Pedestrian walk past a Mahindra & Mahindra Ltd.'s XUV 700 Sports Utility Vehicle (SUV) at company's dealership in Mumbai, India, on Wednesday, Aug. 3, 2022.
Pedestrian walk past a Mahindra & Mahindra Ltd.'s XUV 700 Sports Utility Vehicle (SUV) at company's dealership in Mumbai, India, on Wednesday, Aug. 3, 2022.

By Ragini Saxena

(Bloomberg) — Temasek is planning to invest 12 billion rupees ($145 million) in Mahindra & Mahindra Ltd.’s electric vehicle unit, valuing it at $9.8 billion.

The Singapore state investor will own 1.49% to 2.97% stake in Mahindra Electric Automobile, the carmaker said in a stock exchange filing Thursday.

The deal comes after Mahindra unveiled five electric SUVs in August, which are conceptualized by the UK-based Mahindra Advanced Design Studio. Mahindra is investing $1.2 billion to build an EV plant in Pune, western India.

Temasek will join British International Investments Plc, a development finance agency in the UK, as an investor in Mahindra’s EV business, whose valuation will increase by 15% with this deal, according to the filing. Mahindra, a leader in electric three-wheelers, aims to have 20% to 30% of its SUV sales to come from battery models by 2027.

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