In this regard, TICMPL entered into an agreement with JA, managing director of Jayem Automotives (Jayem Auto) to jointly invest in the new company, wherein TICMPL will hold 80% stake and JA will hold 20%.

Further, to augment TICMPL R&D and rapid product development capability, it has entered into definitive agreements to acquire 50% stake in Jayem Auto through a combination of primary subscription and secondary purchase of shares, for a total sum of up to Rs 206 crore. Currently, Jayem is engaged in design, development, testing and manufacturing of a wide range of automotive components, systems and prototypes with deep expertise in electric vehicles. Its turnover for financial year 2021-2022 was Rs 70.79 crore.

The cost of acquisition is up to Rs 176 crore towards purchase of 54,82,722 equity shares from the founders and other shareholders of Jayem and up to Rs 30 crore towards subscription to 9,34,556 equity shares of Jayem. The acquisition is expected to be completed on or before 01 September 2023, subject to satisfactory completion of the conditions precedents as contained in the agreements executed between the parties.

M.A.M Arunachalam (also known as Arun Murugappan), chairman of TICMPL, said, “A significant milestone in our Electric Vehicle foray with the addition of small commercial vehicles to our electric mobility offerings. With the addition of eSCV, our fourth EV Platform, TICMPL will be in a position to offer end-to-end mobility solutions to enterprises and logistic companies across intercity, intracity and last mile applications.”

Speaking on the partnership, Jayem's managing director, J. Anand said, “We are very excited to partner with TICMPL and be a part of this transformation journey. With Jayem's capabilities in concept creation, design, development and prototyping, combined with TICMPL's manufacturing and marketing expertise, we are confident that we will deliver high-performance products to the market that surpass customer expectations in the EV small commercial vehicle segment.”

TII, a Murugappa Group company, is one of India's leading manufacturers of a wide range of precision engineered and metal formed products for major industries such as automotive, railway, construction, mining, agriculture, etc. The company is also a leading manufacturer of bicycles in India, with a range of iconic brands and a strong market presence.

The company's consolidated net profit jumped 74.4% to Rs 311.84 crore on 12.1%increase in net sales to Rs 3656.28 crore in Q4 FY23 over Q4 FY22.

The scrip was down 0.06% to Rs 3180.30 on the BSE.