TI Clean Mobility Private Limited (TICMPL), a wholly owned subsidiary of Tube Investments of India Limited (TII), has signed definitive documents with TII, Multiples Private Equity Fund III (Multiples), State Bank of India (SBI) along with other co-investors to raise capital up to Rs. 1950 Cr. in the form of Equity and CCPS.
The total investment by Multiples, SBI and other Co-investors would aggregate up to Rs.1200 Cr., a statement said.
TII’s total investment would be Rs.750 Cr., of which TII has already invested Rs.639 Cr. by way of Equity and ICD. Further, TICMPL plans to raise additional funding of Rs.1,050 Cr. by the end of March 2024, thereby taking the total fund raise to Rs.3,000 Cr.
TICMPL has already unveiled its passenger 3-wheeler electric vehicle; sales of which are expected to ramp up over the next few quarters. The company, through its subsidiaries, is driving the design and development of electric tractors and electric Heavy Commercial Vehicles, the statement said.
Commenting on the above fund raising, M.A.M Arunachalam (known as Arun Murugappan), Chairman, TII and TICMPL 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.”
S. Vellayan, Executive Vice Chairman, TII said “We aim to play a significant role in the electrification of vehicles in the productive segment to enable India’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.’
Renuka Ramnath, Founder, MD & CEO of Multiples said “We are privileged and excited to partner with the Murugappa group in its journey to build India’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.”
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