Murugappa unit acquires 70% stake in e-mobility firm

New Delhi (PTI): Muruguppa group firm Tube Investments of India Ltd (TII) on Monday said it will acquire 70 per cent stake in start-up Cellestial E-Mobility Pvt Ltd for Rs 161 crore.

Cellestial E-Mobility is engaged in the design and manufacture of electric tractors, aviation ground support electric equipment and other electric machinery. It has already designed and developed two tractor prototypes for production, TII said in a regulatory filing. TII, which has recently embarked on an electric 3-wheeler initiative, as part of its foray into clean mobility, said it is also setting up a new 100 per cent subsidiary and will be infusing initial capital to the extent of Rs 350 crore on it.

TII Chairman M.A.M. Arunachalam said, “The formation of a separate subsidiary and acquisition of a controlling stake in Cellestial will enable the company to bring required focus to the emerging growth opportunities in electric vehicles.” These new EV products along with the existing product portfolio of bicycles and e-bicycles will further strengthen the company’s efforts towards climate change and sustainability, he added.

The company said it has signed shares subscription and purchase agreement, with Cellestial E-Mobility, its founders and other existing shareholders in connection with the making of a strategic investment, in an all cash transaction of Rs 161 crore to acquire a controlling stake of up to 70 per cent in the share capital of Cellestial.