TI Clean Mobility to raise Rs 580 cr from GEF Capital Partners
The Murugappa Group company Tube Investments of India (TII) announced on Monday that GEF Capital Partners LLC, a private equity firm, has finalized an agreement with its arm, TI Clean Mobility, to raise Rs 580 crore.
In order to issue money in the form of stock and compulsorily convertible preference shares (CCPS), TI Clean Mobility Pvt Ltd (TICMPL) and South Asia Growth Invest III LLC and South Asia EBT Trust III (collectively, GEF) signed definitive papers on May 6, 2024, according to a regulatory filing.
Before this, TICMPL had announced that it intended to raise funds totalling Rs 3,000 crore to finance its many sectors related to electric vehicles.
According to the TII filing, “the whole fundraising would aggregate to Rs 2,530 crore upon conclusion of the proposed investment from GEF.”
“GEF is famous for their dedication to environmental stewardship and their investment in TICMPL supports our vision and enhances our ambition to provide cleaner commercial mobility solutions,”
stated S. Vellayan, Executive Vice Chairman of TII.
Sridhar Narayan, a managing partner and co-founder of GEF Capital Partners LLC, stated that the Murugappa Group has a unique platform that targets profitable subsegments with an emphasis on electrification through TI Clean Mobility.
“…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,”
Narayan added.
The goal of TICMPL is to develop EV-native platforms for tractors, small and large commercial vehicles, and three-wheelers. The business also offers electric heavy-duty commercial vehicles for sale, both directly and through its subsidiaries.
According to the filing, it is also far along in the development of electric tractors and small commercial vehicles, which should be introduced in the upcoming quarters.
