Tube lnvestments Acquires Majority Stake In Heavy Duty EV Startup IPLTech

Murugappa Group engineering company Tube lnvestments of India has acquired a majority stake in InfraPrime Logistics Technologies (IPLTech), a heavy-duty electric vehicle (EV) manufacturing startup, through its wholly owned subsidiary TI Clean Mobility.

Tube lnvestments has entered into definitive agreements for acquisition of a 65.2% stake in IPLTech for an aggregate consideration of up to INR 246 Cr.

Tube lnvestments of India will invest up to INR 96 Cr towards the purchase of 5,380 equity shares from the founders and other shareholders of IPLTech. Besides, up to INR 150 Cr will go towards the subscription to 8,456 equity shares of the startup, the engineering company said in a stock exchange filing earlier this week.

The deal is expected to be completed by October 31 this year.

IPLTech, incorporated in 2019 and headquartered in Gurugram, is engaged in manufacturing and sale of electric heavy commercial vehicles. The startup unveiled its first commercial EV – Rhino 5536A, a 60-tonne truck used in the construction industry and powered by a 276 kWh battery, during its incorporation year.

IPLTech’s turnover in FY22 stood at INR 13 Cr, while it was at INR 23 Cr in FY21.

Tube Investments already has interests in three-wheeler electric vehicles and electric tractors through TI Clean Mobility.

Commenting on the acquisition, Tube lnvestments Chairman M.A.M Arunachalam said, “The acquisition of lPLTech Electric Private Limited has expanded our footprint in the clean mobility space and gives us a first mover advantage in this segment.”

The Growing Interest In EVs

The development highlights the growing interest in the country’s EV and green mobility market as large conglomerates from both India and abroad are entering the segment.

In May, Jindal Worldwide acquired Mumbai-based EV startup Earth Energy EV via its subsidiary Jindal Mobilitric. In the same month, Swiss technology company ABB increased its shareholding in Bengaluru-based EV charging solutions startup Numocity to 72% from 7%, and would gain the right to become its sole owner by 2026.

In March, Yamaha Motor’s Moto Business Service India (MBSI) invested an undisclosed amount in the Indian B2C taxi aggregator startup Malbork Technologies.

EverSource Capital, a product of British oil and gas company BP’s joint venture with private equity firm Everstone Capital, acquired a majority stake in the Bengaluru-based EV startup Lithium Urban Technologies.  

Recently, Mahindra & Mahindra also raised INR 1,925 Cr ($250 Mn) from British International Investment (BII) for its new EV unit.

Pegged at $220.1 Mn in 2020, the Indian EV market is estimated to expand at a compound annual growth rate (CAGR) of 94.4% from 2021 to 2030, as per a Grand View Research report.

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