TI Clean Mobility (TCM), a subsidiary of Tube Investments of India (TII), a Murugappa Group company, has signed definitive documents with TII, Multiples Private Equity Fund III (Multiples), State Bank of India (SBI) along with other co-investors to raise up to Rs 1950 crore in the form of equity and compulsorily convertible preference shares.
The total investment by Multiples, SBI and other co-investors would aggregate up to Rs 1200 crore. TII’s total investment would be Rs 750 crore, of which TII has already invested Rs 639 crore by way of equity and ICD. Further, TCM plans to raise an additional Rs 1,050 crore by the end of March 2024, thereby taking the total fundraise to Rs 3,000 crore.
TCM has already unveiled its passenger three-wheeler electric vehicle, the sales of which are expected to grow over the next few quarters. The company, through its subsidiaries, is driving the design and development of electric tractors and electric heavy commercial vehicles.
Commenting on the fund raising, M A M Arunachalam (known as Arun Murugappan), chairman, TII and TCM said, “TCM is focused on the productive segment of electric vehicle industry viz., three wheelers, tractors and heavy commercial vehicles. The confidence reposed by esteemed investors such as Multiples and SBI will give TCM the necessary impetus to fulfil our ambition by scaling our operations through organic and inorganic means.”
“We aim to play a significant role in the electrification of vehicles in the productive segment to enable India’s 30 per cent 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,” said S Vellayan, executive vice chairman, TII.
Renuka Ramnath, founder, managing director and chief executive officer 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.”