Murugappa Group firm Tube Investments of India(TII) on Monday said its arm TI Clean Mobility has signed a definitive agreement to raise Rs 580 crore from private equity firm GEF Capital Partners LLC.

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TI Clean Mobility Pvt Ltd (TICMPL) signed definitive documents on May 6, 2024 with South Asia Growth Invest III LLC and South Asia EBT Trust III (collectively GEF) to raise the capital in the form of equity and compulsorily convertible preference shares (CCPS), a regulatory filing said.

Earlier, TICMPL had stated that it was planning to raise capital to the tune of Rs 3,000 crore to fund its multiple verticals of electric vehicles. "Upon closing of the proposed investment from GEF, the overall fundraising would aggregate to Rs 2,530 crore," the filing by TII said.

TII Executive Vice Chairman, S Vellayan said, " GEF is renowned for their commitment to environmental stewardship and their investment in TICMPL validates our vision and strengthens our resolve to provide cleaner commercial mobility solutions."
 
GEF Capital Partners LLC Co-Founder and Managing Partner Sridhar Narayan said Murugappa Group has a differentiated platform targeting productive subsegments with a strong focus on electrification with TI Clean Mobility."...They've shown early success with their unique goto-market strategy. 

We look forward to supporting them in shaping the future of clean mobility," Narayan added. TICMPL is focused on creating EV native commercial vehicle platforms across 3-wheelers, tractors, small and heavy commercial vehicles. The company directly and through its subsidiaries, also sells electric heavy commercial vehicles.

It is also in advanced stages of developing electric tractors and electric small commercial vehicles which are expected to be launched in the coming quarters, the filing said. Kotak Investment Banking acted as TICMPL's exclusive financial advisor for the transaction.