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June 5, 2024

Murugappa Group’s TI Clean Mobility to Raise Rs 310 Crore from M&G Investments

Murugappa Group’s electric vehicle (EV) arm, TI Clean Mobility (TICMPL), is set to bolster its financial strength by raising approximately Rs 310 crore from M&G Investments. This new influx of capital will be achieved through Equity and Compulsorily Convertible Preference Shares (CCPS). As a leading player in the passenger three-wheeler EV segment in South India, TICMPL is making significant strides towards establishing a pan-India presence in the EV market.

Expanding Horizons with Strategic Funding

A subsidiary of Tube Investments of India (TII), TICMPL aims to raise a total of Rs 3,000 crore to support its diversified ventures within the electric vehicle sector. This latest capital injection from M&G Investments will bring the company’s cumulative fundraising to Rs 2,840 crore, putting them closer to their financial goals.

Innovative EV Platforms

TICMPL’s vision extends beyond passenger three-wheelers, encompassing a variety of EV-native commercial vehicle platforms. The company is developing electric solutions for three-wheelers, tractors, and both small and heavy commercial vehicles. Their leadership in the South Indian passenger three-wheeler market is a testament to their innovative approach and commitment to sustainable mobility.

Towards a Cleaner and Smarter Future

S Vellayan, Vice Chairman of TICMPL, expressed his enthusiasm about M&G’s investment, highlighting the partnership’s role in advancing TICMPL’s mission. “We are happy to announce the participation of M&G in providing an impetus to our commitment to delivering EV solutions for commercial mobility. Together, we stride towards a cleaner future and smarter transportation,” Vellayan stated.

M&G’s Commitment to Sustainability

M&G Investments, through its Catalyst initiative, is equally optimistic about this collaboration. Praveg Patil, Head of Asia Pacific Impact and Private Equity at M&G, emphasized their shared mission with TICMPL. “M&G Catalyst is pleased to invest in one of India’s fastest-growing commercial electric vehicle manufacturers, TI Clean Mobility Private Limited, part of the Murugappa Group. We share the company’s mission to develop an indigenous EV ecosystem by leveraging local manufacturing and technology capabilities. We are excited by the potential of this investment to reduce fossil fuel dependency and decarbonize substantial parts of India’s commercial vehicle fleets,” Patil remarked.

Strategic Guidance

Kotak Investment Banking played a crucial role as TICMPL’s exclusive financial advisor for this transaction, ensuring that the deal aligns with TICMPL’s strategic growth objectives.

Pioneering the EV Landscape

TICMPL’s comprehensive strategy includes the sale of electric heavy commercial vehicles and the development of electric tractors and small commercial vehicles. These innovations are in advanced stages and are expected to launch in the coming quarters, further solidifying TICMPL’s position in the Indian EV market.

A Collaborative Path Forward

The partnership between TICMPL and M&G Investments represents a significant milestone in the journey towards sustainable and smart transportation solutions in India. By leveraging their combined expertise and resources, both entities are poised to make substantial contributions to the reduction of fossil fuel dependency and the promotion of cleaner mobility options across the nation.

In summary, the Rs 310 crore investment from M&G Investments marks a pivotal moment for Murugappa Group’s TI Clean Mobility. As TICMPL continues to expand its EV offerings and enhance its market presence, this collaboration underscores the growing importance of sustainable transportation solutions in India’s commercial vehicle sector.

Read more Business related news on R9 News
Jhumpa Lahiri

Jhumpa Lahiri

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