CHENNAI: Murugappa group company Tube Investments of India (TII) will form a new 100% subsidiary which will consolidate its electric three-wheeler and other EV-related ventures.
Through this clean mobility subsidiary, TII will acquire around 70% controlling stake in Cellestial E-Mobility for an investment of Rs 161 crore. The acquisition would be through a combination of primary and secondary purchase of shares, the company said in a statement on Monday.
TII will be infusing initial capital to the extent of Rs 350 crore into the new subsidiary through a combination of equity, preference and debt instruments.
This is the second startup investment by TII this month. Last week, the company invested seed round funds of Rs 3.5 crore at IIT Madras-incubated company Aerostrovilos Energy.
Cellestial is a startup engaged in the design and manufacture of E-tractors. “The electric tractors developed by Cellestial offer several advantages like a swappable battery and lower total cost of ownership compared to current IC tractors,” said the statement.
M A M Arunachalam (known as Arun Murugappan), chairman of TII, said, “The formation of a separate subsidiary and acquisition of a controlling stake in Cellestial will enable the company to bring required focus to the emerging growth opportunities in electric vehicles. These new EV products along with the existing product portfolio of bicycles and e-bicycles will further strengthen the company’s efforts towards climate change and sustainability.”