A wholly owned subsidiary of Tube Investments of India (TII), TI Clean Mobility Private has signed definitive documents to raise capital to Rs 1,950 crore through equity and CCPS with TII, State Bank of India, and Multiples Private Equity Fund III. It is also part of the Murugappa Group.
According to the company, co-investors will invest a total of Rs 1,200 crore. TII’s total investment will be Rs 750 Crore. It has already invested Rs 639 Cr in equity and ICD. TI Clean Mobility also plans to raise Rs 1,050 crore more funding by March 2024. This would bring the total fund raised to Rs 3,000 Crore.
The company has already revealed its electric three-wheeler for passengers. Sales are expected to increase over the next few quarters. Through its subsidiaries, the company is responsible for designing and developing electric tractors as well as electric heavy commercial vehicles.
M A M Arunachalam, Chairman, TII, and TICMPL stated, “TICMPL focuses on the productive segment in the electric vehicle industry viz. three-wheelers and tractors heavy commercial vehicles. TICMPL will be able to realize its ambitions through the help of esteemed investors like Multiples and SBI thanks to the confidence shown by these respected investors.”
S Vellayan, TII’s Executive Vice-Chairman, stated that “We aim to play a substantial role in electrification vehicles in the productive segment in order to enable India’s 30% EV penetration target for 2030. We have the unique ability to create a large EV-native OEM because of our Group’s extensive experience in segments like auto components, vehicle finance, and motors.”
Multiples’ founder, MD, and CEO, Renuka Ramnath said, “We are privileged to partner with the Murugappa Group in its quest to build India’s most important electric commercial vehicle OEM. We believe that TICMPL, under the leadership of Arun Murugappan and S Vellayan, will create a strong brand and differentiated customer proposition in line with our strategy to identify big shifts and invest with category champions.”