Tube Investments of India Ltd’s Subsidiary Secures ₹160 Crore Investment from GEF

On June 11, 2024, Tube Investments of India Ltd (Tll) informed the exchanges that the company and its subsidiary, Tl Clean Mobility Private Limited (TICMPL), have entered into a Definitive Agreement with South Asia Growth lnvest lll LLC and South Asia EBT Trust lll (collectively referred to as GEF) for an additional subscription towards Compulsorily Convertible Preference Shares for ₹160 crore in Tl Clean Mobility Private Limited.

The company stated that with the proposed investment, Tl Clean Mobility Private Limited has completed tying up the targeted fundraising of ₹3,000 crore from Tll and other investors.

Tl Clean Mobility Private Limited is in the electric mobility business. TICMPL’s proposed fundraising will help scale up its operations and subsidiaries. Tube Investments of India Ltd holds 25 crore equity shares with a face value of ₹10 each and 5 crore Series B Compulsorily Convertible Preference Shares (CCPS) with a face value of ₹100 each in Tl Clean Mobility Private Limited.

In the event of issuing shares to involved parties, including the Additional Series A2 CCPS to GEF, pertinent details include the issuance of 1,60,00,000 CCPS at a face value of ₹100 per CCPS, totalling ₹160 crore. Regarding conversion, the conversion ratio of CCPS held by other investors, GEF, and Tll will be determined based on TICMPL’s valuation at the time of conversion.

Key provisions of the Shareholders’ Agreement between TICMPL, Tll, current investors, and GEF encompass various critical aspects. These include delineations regarding Board Composition, matters requiring Investors’ Affirmative Vote, Information Rights, Pre-Emption Rights, Rights of First Offer, Tag Along Rights, Conversion Terms, as well as provisions regarding Non-Compete and Non-Solicitation, and terms for Fall Away clauses.

The transaction/investment closure is subject to fulfilling the Conditions Precedent outlined in the agreements between the involved parties. Successful completion of these conditions is essential for finalising the transaction or investment process.

About Tube Investments of India Limited

Tube Investments of India Limited is one of India’s prominent manufacturers, producing a comprehensive range of products catering to significant sectors, including automotive, railway, construction, mining, agriculture, and more. The company’s primary verticals encompass Engineering, Bicycles and Metal Formed Products.

On June 12, 2024, the share price of Tube Investments of India Ltd opened at ₹4,149.00, touching the day’s high at ₹4,264.55, as of 11:11 AM on the NSE.

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