The Group’s EV arm TI Clean Mobility, which currently holds 69.96% of Cellestial E-Mobility, acquires the remaining 30.04% stake for Rs 50.90 crore.
27 Jan 2023 | 19363 Views | By Autocar Professional Bureau
TI Clean Mobility, a wholly owned subsidiary of the Murugappa Group’s Tube Investments of India (TII), has acquired the entire shareholding of Cellestial E-Mobility Pvt Ltd, a start-up company engaged in the design and development of electric tractors.
In line with its growth plan for the electric vehicle industry, ...
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TI Clean Mobility, a wholly owned subsidiary of the Murugappa Group’s Tube Investments of India (TII), has acquired the entire shareholding of Cellestial E-Mobility Pvt Ltd, a start-up company engaged in the design and development of electric tractors.
In line with its growth plan for the electric vehicle industry, TI Clean Mobility, which currently holds 69.96% of Cellestial E-Mobility, today executed a share purchase agreement with the founders of Cellestial E-Mobility to acquire the balance 30.04% stake for an aggregate consideration of Rs 50.90 crore.
In January 2022, TII had said that it would infuse initial capital to the extent of Rs 350 crore into the new subsidiary for clean mobility through a combination of equity, preference and debt instruments.
Cellestial's electric tractors, which come with a swappable battery, are claimed to offer lower total cost of ownership compared to current IC tractors.
Commenting on the acquisition, M.A.M Arunachalam, chairman of TICMPL said, “The acquisition of the remaining stake in Cellestial will help TICMPL to consolidate its holding in the electric tractors business and maximise value to the company. We thank the founders for their contribution.”
Siddhartha Durairajan and Syed Mubasheer Ali, the Co-founders of Cellestial, said: “Cellestial is well positioned to achieve its full potential and the acquisition of the balance shareholding in Cellestial by TICMPL will accelerate the same.”
In December 2021, TI Cycles of India (TII) had announced its entry into the electric vehicle market with its existing Montra brand and in the last-mile commute, last-mile delivery and personal mobility vehicle segments.
Founded in 1900, the Chennai-headquartered Rs 54,722 croreMurugappa Group is one of India's leading business conglomerates and has 29 businesses. The Group holds leadership position in several product lines including abrasives, technical ceramics, electro minerals, auto components and systems, power conversion equipment, and transformers among others.
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