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TI Clean Mobility Pvt Ltd (TICMPL)  on Friday said it will acquire an additional 30.04 % stake in Cellestial E-Mobility Pvt Ltd for Rs 50.90 crore to consolidate its holding in electric tractors business.

The company, a wholly-owned arm of Murugappa Group firm Tube Investments of India Ltd, said it has signed a share purchase agreement with the founders of Cellestial for the acquisition.

It currently holds 69.96 % in Cellestial, a startup company engaged in the design and development of electric tractors, TI Clean Mobility Pvt Ltd (TICMPL) said in a statement.

Post-acquisition, Cellestial will become a wholly-owned subsidiary of TICMPL. Hyderabad-based Cellestial is a startup entity engaged in the design and manufacture of electric tractors, aviation ground support electric equipment and other electric machinery.

“The acquisition of the remaining stake in Cellestial will help TICMPL to consolidate its holding in the electric tractors business and maximise value to the company. We thank the founders for their contribution,” MAM Arunachalam (known as Arun Murugappan), Chairman of TICMPL, said.

Cellestial co-founders Siddhartha Durairajan and Syed Mubasheer Ali said the startup is well-positioned to achieve its full potential and the acquisition of balance shareholding in Cellestial by TICMPL will accelerate the same.

TII had formed a subsidiary, TICMPL, to carry on the electric three-wheeler venture and other EV-related projects in January last year. The company then had said it will be infusing initial capital to the tune of Rs 350 crore into the new subsidiary for clean mobility, through a combination of equity, preference and debt instruments. TII had launched passenger e-three wheelers under brand name Montra in September 2022.

(Disclaimer: Additional background information has been added to this PTI copy for context)