In Wednesday’s trading session, the share price of one of India’s leading manufacturers of a wide range of precision-engineered and metal-formed products, surged 5.08 percent to Rs. 4,268.4, after the company and its subsidiary secured Rs. 160 crore investments for EV funding.
At 10:33 a.m., the shares of Tube Investments of India (NS:TBEI) (TII) Limited were trading in the green at Rs. 4,200, up by 3.4 percent, as against its previous closing price of Rs. 4,061.9, with a market cap of Rs. 81,230.3 crore.
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TII and Tl Clean Mobility Private Limited (TICMPL), a subsidiary of Tll, entered into an agreement of Rs. 160 crore with South Asia Growth lnvest lll LLC and South Asia EBT Trust lll.
According to the latest regulatory filings with the stock exchanges, TII and TICMPL entered into Definitive Agreement(s) with South Asia Growth lnvest lll LLC and South Asia EBT Trust lll (collectively referred as GEF) for an additional subscription towards Compulsorily Convertible Preference Shares (CCPS) for Rs. 160 crore in TICMPL.
This investment is a part of the larger goal of TICMPL for a total fundraising of Rs. 3,000 crore, which would help scale up its electric mobility operations.
With the proposed investment, TICMPL has successfully completed tying up the targeted fund raise of Rs. 3,000 crore from Tll and other investors.
As part of the agreement, the issuance of 1.6 crore additional Series A2 CCPS at a face value of Rs. 100 per CCPS. Based on the valuation of TICMPL at the time of conversion, the conversion ratio of CCPS held by other investors, GEF and Tll shall be determined.
Tl Clean Mobility Private Limited (TICMPL) is a subsidiary of TII and is in the electricity mobility business.
In terms of financials, the company reported a growth in revenue from operations by 18.8 percent YoY from Rs. 3,656.3 crore in Q4 FY22-23 to Rs. 4,345 crore in Q4 FY23-24. However, the after-tax profit fell by 43.2 percent from Rs. 477.4 crore to Rs. 271.31 crore, during the same period.
The return on equity (ROE) stood at 23.54 percent in FY23-24, down from 24.18 percent in FY22-23, and a decline in the Return on Capital Employed (ROCE) from 29.38 percent in FY22-23 to 20.94 percent in FY23-24.
The stock has delivered nearly 47.8 percent of positive returns in the last one year, and around 17.3 percent of positive returns year-to-date.
Tube Investments of India (TII) Limited, a part of Murugappa Group, is India’s leading engineering company engaged in the manufacturing of precision steel tubes & strips, automotive, industrial chains, car door frames and bicycles.
The company is among the leading manufacturers of Bicycles in India, with a wide range of iconic brands and a strong market presence.
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Written by Shivani Singh
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