Tube Investments of India Ltd (TII), a Muruguppa group company, announced on Monday that it will acquire a 70% stake in startup Cellestial E-Mobility Pvt Ltd for Rs 161 crore. Cellestial E-Mobility designs and manufactures electric tractors, aviation ground support equipment, and other electric machinery. According to a regulatory filing, TII has already designed and developed two tractor prototypes for production.
TII, which has recently launched an electric 3-wheeler initiative as part of its foray into clean mobility, has also announced the establishment of a new 100% subsidiary with an initial capital infusion of Rs 350 crore.
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 announced that it has signed a share subscription and purchase agreement with Cellestial E-Mobility, its founders, and other existing shareholders in connection with a strategic investment of Rs 161 crore in an all-cash transaction to acquire a controlling stake of up to 70% in Cellestial’s share capital.
The acquisition will be accomplished through the purchase of equity shares from Cellestial’s founders and other existing shareholders, as well as the subscription to new equity shares to be issued by Cellestial, according to TII, which is involved in the manufacturing of bicycles and engineering, among other things.
Get to know the pulses of the Indian startup ecosystem in reality by attending “INDIA FIRST TECH STARTUP CONCLAVE & AWARDS’22-Delhi Chapter” organized by the All India Council for robotics and automation, supported by the Ministry of electronics and information technology.
The event is scheduled to be held on the 17th and 18th of February 2022, marking the biggest tech startup event this year. The event brings together the speakers that are the best breed of entrepreneurs, innovators, venture capitalists, government department’s representatives, business model creators, consultants, policy-makers, academicians, support groups, business coaches and business practitioners.
The Platform helps startups to ramp up their innovative ideas and show off their services and products to attract investors. The experts of the industry will address and discuss all the innovations happening around the startup environment that youth empowerment and new-age tech business ideas can grow.
Click to know more about India’s biggest tech startup event: https://www.aicra.org/events/delhi/index.php