TII will create a subsidiary to focus more on clean mobility.

Tube Investments of India (TII) will form a new 100% affiliate that would combine its electric three-wheeler and other EV-related ventures. For a sum of Rs 161 crore, TII will own a 70 percent majority stake in Cellestial E-Mobility.

CHENNAI (CHENNAI): Tube Investments of India (TII), a Murugappa-owned corporation, will form a new 100% affiliate that would combine its electric three-wheeler and other EV-related ventures.For a sum of Rs 161 crore, TII will own a 70 percent majority stake in Cellestial E-Mobility, a grant that will be funded by a private equity firm.In a statement released on Monday, the company said the acquisition would be made possible by a combination of primary and secondary purchase of shares.TII will infuse initial capital up to Rs 350 crore into the existing subsidiary through a combination of equity, preference, and debt instruments.

Last week, the company raised seed round funds of Rs 3.5 crore at Aerostrovilos Energy, an IIT Madras-incubated company.Cellestial is a start-up specializing in the design and manufacture of E-tractors.According to the release, Cellestial's electric tractors have several advantages, including a removable battery and a lower total cost of ownership than current IC tractors.TII chairman Arunachalam (known as Arun Murugappan), said, The establishment of a separate subsidiary and the acquisition of a majority stake in Cellestial will enable the organization to bring the required attention to the emerging growth opportunities in electric vehicles.