TI Clean Mobility seeks investment from Multiples, SBI to expand EV business

Multiples Alternate Asset Management (Multi­ples), the private equity plat­form, and its co-investors are investing up to Rs 1,200 crore in TI Clean Mobility Pvt Ltd (TICMPL), a Murugappa group company.

TICMPL is a wholly owned subsidiary of Tube Invest­ments of India Ltd (TII). The company 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 also driving the design and de­velopment of electric tractors and electric heavy commercial vehicles.

TICMPL plans to raise Rs 1,950 crore at present. This includes the Rs 1,200 crore investment by Multiples, the State Bank of India (SBI), and other co-investors. Of this, TII’s total invest­ment will be Rs 750 crore. It has already invested Rs 639 crore in equity and inter-cor­porate deposits.

TICMPL plans to raise an additional sum of Rs 1,050 crore by the end of March 2024, thereby taking the total fund raiser to Rs 3,000 crore.

TII disclosed in a regulato­ry filing that TICMPL is look­ing to expand its footprint in the electric mobility business through both organic and in­organic means and that this fundraising will help scale its operations through acquisi­tions and capital expenditure.

The investments will be in the form of equity and com­pulsorily convertible prefer­ence shares (CCPS). Of this, 4,00,00,000 CCPS will be issued to Multiples at a face value of Rs 100 per CCPS aggre­gating to Rs 400 crore, while 2,00,00,000 Series A1 CCPS will be issued to SBI at the same face value for Rs 200 crore.

Similarly, 4,25,00,000 Series B CCPS will be allocated to TII also at the same face value for Rs 425 crore. The conversion ratio of CCPS held by the investors and TII will be arrived at based on the valuation of TICMPL at the time of conversion.

“We are privileged and excited to partner with the Murugappa group in its jour­ney to build India’s leading electric commercial vehicle OEM. In line with our strate­gy of identifying big shifts and investing with category cham­pions, we believe that TICMPL under the leadership of Arun Murugappan and S. Vellayan will build a strong brand with a differentiated customer proposition,’’ Renuka Ram­nath, founder, MD & CEO of Multiples, said.