Tube Investments of India (TII) said that its wholly owned subsidiary TI Clean Mobility has signed definitive documents with TII, Multiples Private Equity Fund III (Multiples), 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 compulsorily convertible preference shares (CCPS).

The total investment by Multiples, SBI and other Co-investors would aggregate up to Rs 1,200 crore. Tube Investments' (TII's) total investment would be Rs 750 crore, of which TII has already invested Rs 639 crore by way of equity and inter-corporate deposits (ICD).

Further, TI Clean Mobility 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.

TI Clean Mobility is focused into manufacture and marketing of electric three wheelers and through its subsidiaries into electric tractors and electric heavy commercial vehicles.

TICMPL has already unveiled its passenger 3-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.

M.A.M Arunachalam (known as Arun Murugappan), chairman, TII and TICMPL said, "TICMPL is focused on the productive segment of electric vehicle industry viz., 3-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."

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.”

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 reported 15.47% fall in consolidated net profit to Rs 235.75 crore on a 7.52% increase in sales to Rs 3,538.02 crore in Q3 FY23 over Q3 FY22.

The scrip advanced 2.19% to end at Rs 2550.45 on the BSE yesterday.