Tube Investments of India (TII), a subsidiary of the Murugappa Group, announced on Monday that its division TI Clean Mobility has entered into a definitive agreement to secure Rs 580 crore from GEF Capital Partners LLC, a private equity firm. The agreement, signed by TI Clean Mobility Pvt Ltd (TICMPL) on May 6, 2024, with South Asia Growth Invest III LLC and South Asia EBT Trust III (collectively GEF), involves raising the capital through equity and compulsorily convertible preference shares (CCPS), as per a regulatory filing.
Previously, TICMPL had expressed its intention to raise Rs 3,000 crore to support various segments of electric vehicles. According to the filing by TII, upon the completion of the investment from GEF, the total funds raised would amount to Rs 2,530 crore.
S Vellayan, Executive Vice Chairman of TII, remarked, “GEF is well-known for their dedication to environmental sustainability, and their investment in TICMPL validates our vision and strengthens our commitment to offering cleaner commercial mobility solutions.”
Sridhar Narayan, Co-Founder and Managing Partner of GEF Capital Partners LLC, highlighted that the Murugappa Group has a distinct platform targeting productive subsegments, particularly emphasizing electrification through TI Clean Mobility. Narayan expressed anticipation for supporting TICMPL in shaping the future of clean mobility, noting the early success achieved with their unique go-to-market strategy.
Kotak Investment Banking served as the exclusive financial advisor to TICMPL for this transaction.
