Tube Investments of India Invests Rs 250 Crore in Subsidiary TI Clean Mobility

Tube Investments of India Limited (TII) invested Rs 250 crore in its subsidiary TI Clean Mobility Private Limited (TICMPL) on 29 September, receiving 2.5 crore Series C compulsorily convertible preference shares (CCPS) under a Subscription Agreement, the company told the National Stock Exchange and BSE under Regulation 30 of the SEBI Listing Regulations. The funds will help TICMPL, which is in the electric mobility business, scale up operations of itself and its subsidiaries. TII and TICMPL also signed an Amended and Restated Shareholders' Agreement with TICMPL's investors.

The two companies also signed an Amended and Restated Shareholders' Agreement with TICMPL's investors. The filing says the funds will help scale up operations of TICMPL and its subsidiaries.

TI Clean Mobility Series C CCPS Allotment and TII's Shareholding

Under the Subscription Agreement, TII was allotted 2.5 crore Series C CCPS at a face value of Rs 100 each, amounting to Rs 250 crore.

TII now holds 25 crore equity shares of Rs 10 each, 5 crore Series B CCPS of Rs 100 each and 2.5 crore Series C CCPS of Rs 100 each in TICMPL.

Montra Electric, TIVOLT and TI Clean Mobility's EV Business

TICMPL is based in Chennai and has been a subsidiary of TII since 12 February 2022. It makes and sells electric three-wheelers for the passenger auto and cargo segments under the Montra Electric brand. Its passenger three-wheeler is called Super Auto.

Through its subsidiaries, TICMPL also operates in electric tractors and electric heavy commercial vehicles. One of these subsidiaries, TIVOLT Electric Vehicles, was formed to serve the electric small and light commercial vehicle segment.

Key Terms of the Amended Shareholders' Agreement

The Amended and Restated Shareholders' Agreement covers board composition, investors' affirmative vote matters, information rights, pre-emption right, right of first offer, tag along right, conversion terms, non-compete and non-solicitation, and fall away provisions.

The filing describes TICMPL as a subsidiary of TII. It states that TII's investment in the Series C CCPS was made at face value. The closing of the investment was subject to satisfactory completion of the conditions precedent in the agreements between the parties.

The filing does not name the other investors in TICMPL. It says the disclosure on termination or amendment of agreements is not applicable.