February 25, 2023:TI Clean Mobility Private Limited (TICMPL), a subsidiary of Tube Investments of India Limited (TII), has signed agreements with Multiples Private Equity Fund III, State Bank of India (SBI), and other co-investors to raise up to Rs. 1950 crore in the form of equity and CCPS (Compulsory Convertible Preference Shares). The total investment by Multiples, SBI, and other co-investors would amount to Rs. 1200 crore. TII's total investment would be Rs. 750 crore, out of which it has already invested Rs. 639 crore through equity and ICD (Inter-Corporate Deposit).
TICMPL plans to raise an additional funding of Rs. 1050 crore by the end of March 2024, bringing the total fund raise to Rs. 3000 crore.
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 HeavyCommercial Vehicles.
Commenting on the above fund raising,
Mr. M.A.M Arunachalam (known as Arun Murugappan), Chairman, TII and TICMPL said, “TICMPL is focused on the productivesegment of electric vehicle industry viz., 3 Wheelers, Tractors and Heavy Commercial Vehicles. The confidence reposed by esteemedinvestors such as Multiples and SBI will give TICMPL the necessary impetus to fulfil our ambition by scaling our operations through organic and inorganic means.”
Mr. 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.”
Ms. 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. In 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 strongbrand with a differentiated customer proposition.”
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