 "deal contract handshake")
Murugappa Group's Tube Investments of India (TII) announced on Monday that its subsidiary, TI Clean Mobility, has signed a definitive agreement to raise Rs 580 crore from private equity firm GEF Capital Partners LLC.
According to the company, it has signed definitive documents with South Asia Growth Invest III LLC and South Asia EBT Trust III (collectively, GEF) to raise about Rs 580 crore through equity and compulsorily convertible preference shares (CCPS).
As announced earlier, TICMPL planned to raise Rs 3,000 crore to fund its various electric vehicle verticals. Upon closing the proposed investment from GEF, the total fundraising would aggregate to Rs 2,530 crore.
TICMPL focuses on creating electric vehicle (EV) native commercial vehicle platforms across three-wheelers, tractors, and small and heavy commercial vehicles. It is a leader in the passenger three-wheeler EV market in South India and is currently expanding to a pan-India presence.
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TICMPL, directly and through its subsidiaries, also sells electric heavy commercial vehicles and is in advanced stages of developing electric tractors and electric small commercial vehicles, which are expected to launch in the coming quarters.
Commenting on the fundraising, S Vellayan, executive vice-chairman, TII, said, "GEF is renowned for their commitment to environmental stewardship, and their investment in TICMPL validates our vision and strengthens our resolve to provide cleaner commercial mobility solutions."
On its investment in TICMPL, Sridhar Narayan, co-founder and managing partner of GEF Capital Partners LLC, said, "We are excited to partner with the Murugappa Group and invest in TI Clean Mobility, its differentiated platform targeting productive sub-segments with a strong focus on electrification. Led by industry veteran Vellayan and supported by a talented team, they've shown early success with their unique go-to-market strategy. We look forward to supporting them in shaping the future of clean mobility."
Kotak Investment Banking acted as TICMPL’s financial adviser for this transaction.
