Murugappa Group firm Tube Investments of India (TII) said Multiples Private Equity Fund lll and State Bank of India (SBI) have invested `267 crore and `133 crore, respectively in TI Clean Mobility (TICMPL), a subsidiary of the company.
In a bid to accelerate the electrical vehicle (EV) business, TICMPL had planned to raise capital to the tune of `3,000 crore through a mix of fundraising instruments.
Last month, TICMPL had signed definitive documents with TII, Multiples Private Equity Fund lll and SBl along with other co-investors to raise capital up to `1,950 crore in the form of equity and compulsory convertible preference shares (CCPS). The total investment by Multiples, SBI and other co-investors would aggregate up to `1,200 crore, it had said then.
The company is looking to expand its footprint in the electric mobility business through both organic and inorganic means. The proposed fund raising by TICMPL will help scale its operations through acquisitions and capital expenditure of TICMPL and its subsidiaries.
TICMPL has already unveiled its passenger three-wheeler electric vehicle sales of which are expected to ramp up over the next few quarters. The company, through its subsidiaries, is driving the design and development of electric tractors and electric heavy commercial vehicles.
While announcing its intent to raise funds last month, MAM Arunachalam (known as Arun Murugappan), chairman, TII and TICMPL, said, “TICMPL is focused on the productive segment of electric vehicle industry such as three-wheelers, tractors and heavy commercial vehicles. The confidence reposed by esteemed investors such as Multiples and SBI will give TICMPL the necessary impetus to fulfill our ambition by scaling our operations through organic and inorganic means.”