Tube Investments of India Ltd (TIIL) has successfully raised ₹250 crore through the issuance of Compulsorily Convertible Preference Shares (CCPS) in its subsidiary, TI Clean Mobility Private Limited (TICMPL). The transaction was executed on 29 September 2026 through a Subscription Agreement and an Amended and Restated Shareholders' Agreement between TIIL, TICMPL, and the investors. The Series C CCPS were issued at a face value of ₹100 per share, with TIIL subscribing to 2.5 crore such shares. The funds raised are intended to scale up the operations of TICMPL and its subsidiaries, which are engaged in the electric mobility business. The transaction was subject to the satisfactory completion of conditions precedent as outlined in the agreements, with details disclosed in accordance with Regulation 30 of the SEBI Listing Regulations to ensure transparency and compliance with regulatory requirements.
As reported by The Hindu BusinessLine, TIIL already maintains a significant stake in TICMPL, holding 25 crore equity shares in the company along with five crore Series B CCPS. With the latest transaction, the company has been allotted an additional 2.5 crore Series C CCPS. Following the allotment, TIIL now holds 25 crore equity shares of face value ₹10 each, 5 crore Series B CCPS of face value ₹100 each, and 2.5 crore Series C CCPS of value ₹100 each in TICMPL. The CCPS structure allows for the conversion of preference shares into equity shares at a later date, providing flexibility in capital structure and potentially diluting existing shareholders. The transaction also involves key governance provisions, such as board composition, information rights, and pre-emption rights, ensuring that investors have certain protections and rights including the right to appoint directors and first priority in future share issuances.
The ₹250 crore equity infusion through Series C CCPS reinforces TIIL's long-term commitment to the electric vehicle space despite short-term gestation periods. The parental capital commitment helps bridge the EV division's near-term gestation requirements as it moves towards operational scale-up. The equity-like preference share infusion provides TICMPL with the necessary runway to scale up manufacturing, expand distribution networks, and enhance cost competitiveness. The funds raised will be used to scale up operations, which could involve expanding production capacities, enhancing research and development, or entering new markets. The launch of the Montra Electric 3W Auto in Chennai serves as a direct execution signal of this capitalized expansion, with the company targeting EBITDA and cash flow break-even as near-term milestones. TICMPL is based in Chennai and has been a subsidiary of TIIL since 12 February 2022, making and selling electric three-wheelers for the passenger auto and cargo segments under the Montra Electric brand, with its passenger three-wheeler called Super Auto.
Tube Investments of India reported strong FY26 results with standalone net sales of ₹8,072 crore and a standalone PBT of ₹1,099 crore. The company also generated Free Cash Flow of ₹826 crore in FY26 and declared a total dividend of ₹3.50 per equity share. On a standalone basis, the company's revenue reached ₹2,366.20 crore in Q1 FY27, representing an 17.92% year-on-year increase. Despite the core engineering business remaining highly profitable, generating standalone free cash flow of ₹174 crore in Q1 FY27, the electric mobility segment continues in an intensive investment phase requiring parental support.
