Tube Investments India (TI India), a part of the Murugappa group, announced its plans to form a subsidiary, which will carry forward its foray into the electric three wheeler space and other EV opportunities. The company 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.

A step in this direction - through its clean mobility subsidiary, it is proposing to acquire a controlling stake of about 70% in the equity share capital of Cellestial E-Mobility at an investment of Rs 161 crore, through a combination of primary and secondary purchase of shares. The acquisition would be completed before March 15, 2022.

Cellestial is a start-up engaged in the design and manufacture of e-tractors.

Despite the good news, the stock did not react positively. It opened in the red, down some 0.5% at Rs.1714 and went down further to an intraday low at Rs.1656 and is currently around 2% lower at Rs.1690 levels.