Tube Investments arm Tl Clean Mobility to raise ₹3,000 crore to fuel its EV platform
2 min read . Updated: 25 Feb 2023, 07:27 PM IST
Premium- Tl Clean Mobility intends to expand its presence in the electric mobility market through both organic and inorganic means
TI Clean Mobility (TICMPL), a wholly owned subsidiary of Tube Investments India (TII), plans to raise ₹3,000 crore by March 2024 to fund its electric vehicle business. Tube Investments India has already contributed ₹639 crore to this, according to an announcement on Saturday.
Tube Investments (TII), State Bank of India, Multiples Private Equity Fund lll, and other co-investors have signed binding agreements with Tube Investments' Tl Clean Mobility (TICMPL) arm to raise up to ₹1,950 crore in equity and compulsorily convertible preference shares (CCPS), the company said.
Multiples Private Equity Fund, SBI, and other co-investors would make a total investment of Rs.1200 crore. Tll's total investment would be Rs.750 crore, of which Rs.639 crore has already been invested through equity and lCD. TICMPL also intends to raise an additional Rs.1,050 crore by the end of March 2024, bringing the total fund raise to Rs.3,000 crore.
Tl Clean Mobility intends to expand its presence in the electric mobility market through both organic and inorganic means. The proposed fund raising by TICMPL will help scale its operations through acquisitions and capital expenditure of TICMPL and its subsidiaries, the press released said.
"TICMPL is focused on the productive segment of electric vehicle industry viz., 3 Wheelers, Tractors and Heavy Commercial Vehicles. The confidence reposed by esteemed investors such as Multiples and SBI will give TICMPL the necessary impetus to fulfil our ambition by scaling our operations through organic and inorganic means," said M A M Arunachalam, Chairman of TII and TICMPL.
"We aim to play a significant role in the electrification of vehicles in the productive segment to enable lndia's 30% EV penetration target by 2030. Our Group's experience across segments such as auto components, vehicle finance, agri business and motors will give us the unique ability to build a large EV native OEM,'’ S Vellayan, Executive Vice Chairman, Tll said.
"We are privileged and excited to partner with the Murugappa group in its journey to build lndia's leading electric commercial vehicle OEM. ln line with our strategy of identifying big shifts and investing with category champions, we believe that TICMPL under the leadership of Mr. Arun Murugappan and Mr. S. Vellayan will build a strong brand with a differentiated customer proposition," Renuka Ramnath, Founder, MD & CEO of Multiples said.
On Friday, Shares of Tube Investments ended 2.19% higher at 2550.45 apiece on the BSE.