Indian automaker Mahindra & Mahindra Ltd. (M&M) said Temasek will invest 1,200 crore rupees ($145 million) in the company’s electric vehicle arm Mahindra Electric Automobile Ltd.

The parties executed a binding agreement for the transaction and the Singapore-headquartered global investment firm will invest the capital in Mahindra Electric in the form of compulsorily convertible preference shares at a valuation of up to 80,580 crore rupees, M&M said in a stock exchange announcement.

The investment will result Temasek owing a 1.49% to 2.97% stake in Mahindra Electric.

“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,” said Rajesh Jejurikar, executive director and chief executive officer - auto & farm sectors, at M&M.

Temasek will join British International Investments as an investor in the four-wheeler passenger electric vehicles company, according to the statement.

(Note: $1 = 82.7767 Indian rupees)

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