The shares of Tube Investments of India rose 1 percent in early trade on July 4 after it announced its foray into the small commercial electric vehicle segment via its subsidiary TI Clean Mobility Private Limited (TICMPL).
At 9:20 am, Tube Investments was quoting at Rs 3,215 apiece, up 1 percent from the previous day's close on the National Stock Exchange. In the last six months, the stock has given a 14 percent return.
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The Chennai-headquartered firm said that TICMPL has reached an agreement with Jayem Automotives where it shall acquire a 50 percent stake in the company to fasten the R&D and rapid production capability for its electric vehicle (EV) launch.
The acquisition is a combination of the purchase of equity shares from Anand Jayachandran and B Jayachandran, the promoters of Jayem and other existing shareholders of Jayem and by way of subscription to fresh equity shares, for an aggregate consideration of up to Rs 206 Crores, the company said in a statement to the exchanges.
Jayem is a company involved in automotive research and development. Their business encompasses the design, development, testing, and production of various automotive components, systems, and prototypes.
Tube said that TICMPL will establish a new subsidiary company dedicated to the commercialization of small commercial electric vehicles (EVs). TICMPL has entered into an agreement with J Anand, the managing director of Jayem Automotives. The new entity will see TICMPL holding an 80 percent stake and J Anand holding a 20 percent stake.
In February, Multiples Alternate Asset Management invested Rs 1,200 crore in TICMPL. The overall capital infusion in TI Clean Mobility amounts to Rs 3,000 crore. Multiples and its associates contributed Rs 1,200 crore.
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