Tube Investments of India has forayed into the electric small commercial vehicle segment and augmented its research and development capability through 50 percent equity stake acquisition in Jayem Automotive.

Share Market Live

NSE

Tl Clean Mobility, a subsidiary of Tube Investments of India, will float a new subsidiary company to commercialise electric small commercial vehicles. For this, Tl Clean Mobility entered into an agreement with Jayem Automotives to jointly invest in the new company, wherein the former will hold 80 percent stake by investing Rs 160 crore and the latter will hold 20 percent stake by investing Rs 40 crore.

TI Clean Mobility is engaged in the manufacture and marketing of electric three-wheelers in the passenger auto and cargo segments. The company is working towards the launch of the electric-three wheelers. TI Clean Mobility is a wholly-owned subsidiary of Tube Investments of India effective 12th February 2022. Tl Clean Mobility is looking at new platforms to broaden its product and business portfolio in the productive end of electric vehicles.

Further, to augment its research and development and product development capability, Tl Clean Mobility shall acquire 50 percent stake in Jayem Automotives. This is for a consideration of up to Rs. 206 crores and is expected to be completed by 1st September 2023. Jayem Automotives is an automotive research and development company engaged in the design, development, testing and manufacturing of a wide range of automotive components, systems and prototypes.

In FY23, the net worth of Jayem Automotives stood at Rs 87 crores, while the turnover and loss after tax were Rs 85 crore and Rs 1 crore, respectively.

Tube Investments of India, engaged in the manufacturing of precision steel tubes and industrial chains reported a 74 percent year-on-year jump in net profit at Rs 312 crore for the fourth quarter that ended March 31, 2023. The total revenue stood at Rs 3,656 crore, up 12 percent year on year.

On June 22, the shares of Tube Investments of India hit their all-time high. At 9:45 am on July 3, the stock at Rs 3,184 is trading flat on NSE.

First Published:Jul 4, 2023 9:52 AM IST