Tube Investments of India (TII) said on Monday that it has purchased a 70% share in electric vehicle startup Cellestial E-Mobility for Rs 161 crore in an all-cash deal to develop its sustainable mobility business.
“A strategic investment, in an all-cash transaction of Rs 161 crore to acquire a controlling stake of up to 70 percent in the share capital of Cellestial, through the purchase of equity shares from the founders and other existing shareholders of Cellestial and by way of subscription to fresh equity shares to be issued by Cellestial.”
Tube Investments also plans to create a new subsidiary to focus on sustainable transportation and will invest Rs 350 crore in the new corporation using a combination of stock, preference, and loan instruments, according to the company.
“Tube Investments of India has been exploring new growth opportunities within clean mobility. In line with this strategy, the company has recently embarked on an electric 3-wheeler initiative. This new subsidiary will consolidate the electric 3W venture and other EV-related ventures,” the company said.
Cellestial is a young company that designs and manufactures electric tractors, aircraft ground support equipment, and other electrical gear.
Commenting on the acquisition, Tube Investments 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”.
