Tube Investments of India Limited (TII) finalized agreements with South Asia Growth Invest III LLC and South Asia EBT Trust III (GEF) on June 11, 2024, marking a significant milestone in its funding strategy for TIC Clean Mobility Private Limited (TICMPL), a subsidiary of TII.
According to the disclosure made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, TII and TICMPL have entered into definitive agreements with GEF for an additional subscription towards Compulsorily Convertible Preference Shares (CCPS) amounting to Rs. 160 Crs. This investment forms part of TICMPL’s broader target to raise Rs. 3000 Crs from various investors, including TII.
Sukhmani Bedi, Partner at Tube Investments of India, expressed confidence in the agreement, highlighting its strategic importance in scaling up TICMPL’s operations in the electric mobility sector. “This funding round not only strengthens our financial position but also underscores our commitment to advancing clean mobility solutions in India,” Bedi commented.
The agreements include terms outlining the governance structure, rights related to share issuance, and other affirmative vote matters, ensuring alignment among stakeholders for future growth initiatives. Tube Investments of India currently holds 25 Crs equity shares and 5 Crs Series B CCPS in TICMPL, emphasizing its significant ownership stake in the subsidiary.
The completion of this funding round is subject to the fulfillment of certain conditions precedent detailed in the agreements. Tube Investments of India anticipates that this infusion of funds will bolster TICMPL’s capabilities to enhance its product offerings and expand its market presence in the burgeoning electric mobility sector.
