TI Clean Mobility secures Rs. 580 Cr investment from GEF, driving innovation in commercial electric vehicles for sustainable mobility solutions.
TI Clean Mobility Private Limited (TICMPL) of Tube Investments specializes in developing electric vehicle (EV) platforms tailored for commercial use, across three-wheelers, tractors, and both small and heavy commercial vehicles. It holds a prominent position in the electric passenger three-wheeler market with “Montra Electric’’ in Southern India and is actively spreading its footprint to establish a nationwide presence.
Rs. 580 Cr Investment
Tube Investments of India (TII), a part of the Murugappa Group, revealed that its EV subsidiary, TI Clean Mobility, has finalized a deal to secure Rs 580 crore from private equity firm GEF Capital Partners LLC. This agreement involves the signing of definitive documents with GEF, specifically South Asia Growth Invest III LLC and South Asia EBT Trust III (collectively referred to as GEF), to raise approximately Rs.580 crore through equity and Compulsorily Convertible Preference Shares (CCPS).
As per the plans, GEF will acquire 100 equity shares priced at Rs.20 each and 5.80 crore CCPS valued at Rs.100 per CCPS, totalling Rs.580 crore. The conversion ratio for CCPS held by current investors, GEF, and Tll, will be determined upon conversion.
Initial Fundraise
TICMPL had initially aimed to secure funds amounting to Rs.3,000 crore to support various segments of its electric vehicle operations. However, with the completion of the current investment round, the total raised capital is set to reach Rs.2,530 crore, as stated by the company. They are concentrating on specific sub-categories with an emphasis on electrification. GEF’s reputation for prioritizing environmental responsibility aligns well with its investment in TICMPL, strengthening efforts to deliver sustainable commercial mobility solutions.
GEF’s Commentary on the deal
Sridhar Narayan, Co-Founder and Managing Partner at GEF Capital Partners LLC, expressed excitement about partnering with the Murugappa Group and investing in TI Clean Mobility. He highlighted the company’s focus on productive sub-segments with a major emphasis on electrification. Narayan also praised the leadership of S. Vellayan and the capable team, expressing confidence in their promising success and unique market strategy in shaping clean mobility.
Conclusion: TI Clean Mobility is striding forward in electric vehicles, particularly in commercial mobility, with a focus on innovation and electrification with unique products like “Montra Electric”. GEF’s investment of Rs. 580 crore reaffirms confidence in its vision. Backed by industry GEF’s environmental commitment, TI Clean Mobility seems set to deliver cleaner commercial mobility solutions with the new investment.
Disclaimer: This post has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.