Murugappa Group’s electric vehicle arm TI Clean Mobility Pvt Ltd (TICMPL) has finalised an agreement with M&G Investments to raise a capital of ₹310 crore through equity and CCPS (Compulsorily Convertible Preference Shares).

TICMPL, a subsidiary of Tube Investments of India Ltd, had planned to raise capital to the tune of ₹3,000 crore to fund its multiple verticals of electric vehicles. After this funding round, the total capital raised will be ₹2,840 crore, according to a company statement.

“We are happy to announce the participation of M&G in providing an impetus to our commitment to delivering EV solutions for commercial mobility,” said S Vellayan, Vice Chairman, TICMPL.

TICMPL, directly or through its subsidiaries, sells electric heavy commercial vehicles and is in the advanced stages of developing electric tractors and electric small commercial vehicles which are expected to be launched in the coming quarters.

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“We share the company’s mission to develop an indigenous EV eco-system by leveraging local manufacturing and technology capabilities. We are excited by the potential of this investment to reduce fossil fuel dependency and decarbonise substantial parts of India’s commercial vehicle fleets,” said Praveg Patil, Head of Asia Pacific Impact and Private Equity at M&G.

The company has planned a capex of more than ₹450 crore in this fiscal, of which ₹320 crore will be spent on establishing a unit for electric small commercial vehicles in Chennai.

TICPL aims to build annual production capacities of 75,000 units for e-three-wheelers, 50,000 units for electric small commercial vehicles, 25,000 units for electric tractors and 4,500 units for electric heavy commercial vehicles.

It is preparing to roll out its electric small commercial vehicle under the subsidiary Tivolt Electric Vehicles during the second quarter of this fiscal.

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