TI Clean Mobility signs definitive documents for additional investment

TI Clean Mobility Private Limited ("TICMPL"), a subsidiary of Tube Investments of India Limited ("TII"), has signed definitive documents on 6th May 2024 with South Asia Growth Invest III LLC and South Asia EBT Trust III (collectively "GEF") to raise a capital of about Rs. 580 Crs. in the form of Equity and Compulsorily Convertible Preference Shares ("CCPS").

As announced earlier, TICMPL planned to raise capital to the tune of Rs. 3,000 Crs. to fund its multiple verticals of electric vehicles. Upon closing of the proposed investment from GEF, the overall fund raising would aggregate to Rs. 2,530 Crs.

TICMPL is focused on creating EV native commercial vehicle platforms across 3-wheelers, tractors, small and heavy commercial vehicles. It is a leader in the passenger 3-wheeler electric vehicle across South India and is currently building a pan-India presence.

TICMPL, directly and through its subsidiaries, also sells electric Heavy Commercial Vehicles and are in advanced stages of developing electric tractors and electric Small Commercial Vehicles which are expected to be launched in the coming quarters.

Commenting on the above fund raising, Mr. S. Vellayan, Executive Vice Chairman, TII said "GEF is renowned for their commitment to environmental stewardship and their investment in TICMPL validates our vision and strengthens our resolve to provide cleaner commercial mobility solutions."

On its investment into TICMPL, Sridhar Narayan, Co-Founder and Managing Partner of GEF Capital Partners LLC said "We're excited to partner with the Murugappa Group and invest in TI Clean Mobility - its differentiated platform targeting productive subsegments with a strong focus on electrification. Led by industry veteran S. Vellayan and supported by a talented team, they've shown early success with their unique goto-market strategy. We look forward to supporting them in shaping the future of clean mobility."

Kotak Investment Banking acted as TICMPL's exclusive financial advisor for this transaction.

Shares of Tube Investments of India Limited was last trading in BSE at Rs. 4012.55 as compared to the previous close of Rs. 3817.15. The total number of shares traded during the day was 11759 in over 2095 trades.

The stock hit an intraday high of Rs. 4030.00 and intraday low of 3816.00. The net turnover during the day was Rs. 46493186.00.

Source : Equity Bulls

Keywords

TubeInvestmentsofIndia INE974X01010 TICleanMobility FundRaising Equity CCPS