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Singapore state investor  Temasek Holdings will invest Rs 1,200 crore in Mahindra & Mahindra’s electric mobility unit, Mahindra Electric Automobile Ltd, the company said in a stock exchange filing on Thursday.

The deal will value Mahindra Electric Mobility at Rs 80,580 crore, and increase Temasek’s stake in the company to 2.97% from 1.49%.

British International Investments (BII) has also agreed to invest in the company.

“The valuation of up to $9.8 billion is testimony to Mahindra’s EV business and the progress we have made in the journey towards scaling up the electric SUV portfolio,” said Dr Anish Shah, MD and CEO of Mahindra & Mahindra (M&M).

In July last year, the parent company, M&M, had raised nearly $250 million from BII, a UK impact investor, at a valuation of $9.1 billion.

It is planning to invest Rs 10,000 crore over the next 7-8 years to set up a manufacturing plant for its electrical vehicles, which has been approved by the Maharashtra government.

Mahindra Electric officially merged into its parent company, M&M, in February this year, to synergise EV development, manufacturing and sales operations, the company said in a media release.

As of March 31, 2023, Temasek had a net portfolio value of $287 billion, the press release said.