What's Going On With M&M Shares Today?

Mahindra & Mahindra‘s shares dropped 1.5% on Thursday despite getting a ₹1,200 crore investment from Singapore-based Temasek.

What Happened? The Singapore government-owned fund poured the funds into Mahindra Electric Automobile Ltd (MEAL), the automobile maker’s electric vehicle arm, at a valuation of $9.8 billion (₹81,085 crore).

Temasek’s investment through compulsorily convertible preference shares (CCPS) grants it ownership of 1.49% to 2.97% stake in the EV unit. The valuation of MEAL has surged 15% following the deal.

Mahindra has allocated a capital expenditure of nearly ₹10,000 crore in its EV subsidiaries between FY22 and FY27, with ₹4,000 crore to be invested from FY22 to FY24, planning to launch five new EV models between April and October 2025 as it aims for electric vehicles to account for 20% to 30% of total SUV sales by March 2027.

However, demand for newly launched SUVs has led to supply chain challenges. To meet demand, Mahindra is working to ramp up capacity to 49,000 units per month by the end of FY24.

Price Action: Investors were not impressed by the massive investment by the Singapore fund. Mahindra & Mahindra shares shrank 1.55% to ₹1,462.30 in late afternoon trade on Thursday amid broad market weakness.

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