The acquisition would be through a combination of primary and secondary purchase of shares for a total cash consideration of about Rs 246 crore, the company stated.

IPLT is a startup company incorporated on 6 August 2019 and is engaged in the manufacture and sale of electric heavy commercial vehicles, based out of Gurgaon, India.

TICMPL propose to acquire 13,836 equity shares of IPL Tech Electric (IPLT) representing 65.2% of its equity share capital.

The company said that the proposed acquisition by TICMPL is in line with the intent to broaden its product and business portfolio with a view to reduce its dependence on existing revenue streams.

The acquisition is expected to be completed on or before 31 October 2022, subject to satisfactory completion of the conditions precedents as contained in the agreements executed between the parties.

Commenting on the acquisition, M.A.M Arunachalam (known as Arun Murugappan), chairman of the company said, "The acquisition of IPL Tech Electric has expanded our footprint in the clean mobility space and gives us a first mover advantage in this segment. We have taken another important step to further our vision of improving quality of life through eco-friendly mobility solutions and to drive our ESG goals.”

Meanwhile, the board of directors of the company, has approved a further investment of up to Rs 150 crore in the equity share capital of TICMPL and provision of Inter-Corporate Deposit of an amount not exceeding Rs 100 crore to TICMPL.

Tube Investments of India has been actively exploring growth opportunities in clean mobility. The company formed a 100% subsidiary, Tl Clean Mobility to consolidate and focus on its clean mobility ventures. TICMPL has existing interests in 3-wheeler electric vehicle and electric tractors (operated through its subsidiary Cellestial E-Mobility).

Tube Investments of India, a Murugappa Group company, manufactures fabricated metal products. The company specializes in cycles, steel tubes, strips, chains, and metal formed items. The company's consolidated net profit surged 32.3% to Rs 178.80 crore on 25.1% jump in net sales to Rs 3,282.71 crore in Q4 FY22 over Q4 FY21.