In a bid to accelerate the electrical vehicle (EV) business, TI Clean Mobility Pvt Ltd (TICMPL), a wholly-owned subsidiary of Tube Investments of India (TII) of Murugappa Group is raising capital to the tune of Rs 3,000 crore through a mix of find-raising instruments.

TICMPL has signed definitive documents with TII, Multiples Private Equity Fund III, State Bank of India (SBI) along with other co- investors to raise capital up to Rs 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 Rs 1,200 crore.

TII’s total investment would be Rs 750 crore, of which TII has already invested Rs 639 crore. Further, TICMPL plans to raise additional funding of Rs 1,050 crore by the end of March 2024, thereby taking the total fund-raise to Rs 3,000 crore.

TICMPL has already unveiled its passenger electric three-wheeler; 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.

Also read: How the EV revolution is happening in the two-wheeler industry

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 fulfil our ambition by scaling our operations through organic and inorganic means.”

The company had earlier said that it will start manufacturing of e-three-wheelers and put out the first set of products in March with its current plan and then start selling, increasing volumes from April onwards. The e-truck of 55-tonne will follow a similar timeline.

S Vellayan, executive vice- chairman, TII said “We aim to play a significant role in the electrification of vehicles in the productive segment to enable India’s 30% EV penetration target by 2030. Our group’s experience across segments such as auto components, vehicle finance, agri business and motors will give us the unique ability to build a large EV native OEM.”

TII had revealed that its has been working on four EV platforms and plans to invest Rs 250 crore in each, taking the total investment to Rs 1,000 crore. The company is currently working on platforms for three-wheeler, tractor and heavy commercial vehicles, and the fourth one is in the works.

Also read: Maruti Suzuki’s Shashank Srivastava says EVs will become mainstream in India

Renuka Ramnath, founder, MD & CEO of Multiples said “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 will build a strong brand with a differentiated customer proposition.”