Temasek to Invest $9.8 Billion in Mahindra's EV Division

Temasek, a Singapore investment firm, announced on August 3 that it will purchase up to 3% of Mahindra and Mahindra's electric vehicle unit for up to $9.8 billion.

According to a regulatory filing, Temasek will invest 12 billion rupees ($145.02 million) in compulsorily convertible preference shares in Mahindra Electric Automobile Ltd, giving the investor a 1.49 percent-2.97 percent stake in the automaker.

Temasek has been identified as a "marquee investor" with strong governance by the automaker. It will also help Mahindra Group strengthen its global strategic partnerships.

According to sources, Mahindra has been in talks with global investors, including green funds and private equity firms, for nearly a year to raise between $250 million and $500 million to accelerate its EV plans.

Mahindra has raised the first round of funding for its electric vehicle (EV) business from British International Investment (BII), which has committed to investing in tranches of up to $250 million at a $9.1 billion valuation.