Murugappa Group's EV arm to raise Rs 310 crore from M&G Investments

It planned to raise capital to the tune of Rs 3,000 crore to fund its multiple verticals of electric vehicles

Murugappa Group’s TI Clean Mobility (TICMPL), a leader in the passenger three-wheeler electric vehicle segment across South India, has signed definitive documents with private equity firm M&G Investments (M&G) to raise about Rs 310 crore.

TICMPL, a subsidiary of Murugappa Group’s EV arm Tube Investments of India (TII), will raise this capital in the form of Equity and Compulsorily Convertible Preference Shares (CCPS).

The firm plans to raise capital to the tune of Rs 3,000 crore to fund its multiple verticals of electric vehicles. Upon closing of the proposed investment, the overall fundraising would aggregate to Rs 2,840 crore.

TICMPL is focused on creating EV-native commercial vehicle platforms across three-wheelers, tractors, small and heavy commercial vehicles. It is a leader in the passenger three-wheeler electric vehicle across South India and is currently building a pan-India presence.

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Directly or through its subsidiaries, TICMPL sells electric Heavy Commercial Vehicles and are in advanced stages of developing electric tractors and electric small commercial vehicles which are expected to be launched in the coming quarters.

Commenting on the above fund raising, S Vellayan, Vice Chairman, TICMPL said, “We are happy to announce participation of M&G in providing an impetus to our commitment in delivering EV solutions for commercial mobility. Together, we stride towards a cleaner future and smarter transportation.”

On its investment into TICMPL, Praveg Patil, Head of Asia Pacific Impact and Private Equity at M&G said, “M&G Catalyst is pleased to invest in one of India’s fastest growing commercial electric vehicle manufacturer, TI Clean Mobility Private Limited, part of the Murugappa Group. We share the company's mission to develop an indigenous EV eco-system by leveraging local manufacturing and technology capabilities. We are excited by the potential of this investment to reduce fossil fuel dependency and decarbonise substantial parts of India's commercial vehicle fleets.”

Kotak Investment Banking acted as TICMPL’s exclusive financial advisor for this transaction. 

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