TI Clean Mobility Private Limited (TICMPL), a subsidiary of Tube Investments of India Limited (TII), has signed definitive documents on 5th June 2024 with M & G Investments (M&G) to raise a capital of about Rs. 310 crores 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 crores to fund its multiple verticals of electric vehicles. Upon closing of the proposed investment, the overall fund raising would aggregate to Rs. 2,840 crores.
TICMPL is focused on creating EV-native commercial vehicle platforms across three-wheelers, tractors, small and heavy commercial vehicles.
TICMPL, directly or through its subsidiaries, sells electric Heavy Commercial Vehicles and is in the 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, S. Vellayan, Vice Chairman, TICMPL said "We are happy to announce participation of M&G in providing an impetus to our commitment in delivering EV solutions for commercial mobility. Together, we stride towards a cleaner future and smarter transportation."
On its investment into TICMPL, Praveg Patil, Head of Asia Pacific Impact and Private Equity at M&G said "M&G Catalyst is pleased to invest in one of India's fastest growing commercial electric vehicle manufacturer, TI Clean Mobility Private Limited, part of the Murugappa Group. We share the company's mission to develop an indigenous EV eco-system by leveraging local manufacturing and technology capabilities. We are excited by the potential of this investment to reduce fossil fuel dependency and decarbonise substantial parts of India's commercial vehicle fleets."
Kotak Investment Banking acted as TICMPL's exclusive financial advisor for this transaction.