Reliance Industries' arm Reliance New Energy Limited (RNEL) has entered into an agreement to invest Rs 50.16 crore in Altigreen Propulsion Labs Private Limited (Altigreen), the Mukesh Ambani-led conglomerate said on Thursday.
RNEL will buy compulsorily convertible preference shares of the Bengaluru-based company. Altigreen is an electric vehicle technology and solutions provider for commercial last mile transportation through two-, three- and four-wheeled vehicles. The transaction is proposed to be completed before March.
“The investment is part of our company's strategic intent of collaborating with innovative companies in new energy and new mobility ecosystems,” RIL said. RIL, however, did not disclose the stake that it will acquire upon the conversion of the shares in Altigreen.
Altigreen has developed an E3 vehicle and its vehicles are built in-house in Bangalore on a 100 percent indigenous mobility platform. It currently has presence in 60 countries with 26 global Patents.
Incorporated in India on February 8, 2013, its turnover in FY19, FY20 and FY21 stood at Rs 193.53 lakh, Rs 61.62 lakhs and Rs 103.82 lakh, respectively.
The acquisition is not a related-party transaction and none of RIL's promoter, promoter group, or group companies has any interest in the above entities involved in the transaction. RIL said that the transaction does not require any government or regulatory approval.
The electric mobility space in India has attracted conglomerates like RIL, Adani Group and Tata Group to build ties with companies primarily to expand the EV charging platforms.
In October last year, RIL and BP’s fuel and mobility joint venture, Reliance BP Mobility Limited, launched its first Jio-bp branded mobility station in Navi Mumbai. The JV plans to set up a network of electric vehicle charging stations and battery swap stations at its mobility stations and other standalone locations.
In the same year, Reliance BP Mobility tied up with Gurugram-based BluSmart to set up electric vehicle charging infrastructure. The RIL arm also has an agreement with the Mahindra Group to explore the creation of electric vehicle products and services and to identify synergies in low-carbon and conventional fuels.
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