Cyril Amarchand Mangaldas advised TI Clean Mobility in relation to its investment in IPLTech

Cyril Amarchand Mangaldas advised TI Clean Mobility in relation to its investment in IPLTech

Cyril Amarchand Mangaldas acted as legal counsel to TI Clean Mobility Private Limited, a subsidiary of Tube Investments of India Limited (Tube Investments), in relation to a proposed investment of INR 245 crore (approx.) by TI Clean Mobility Private Limited in IPLTech Electric Private Limited (IPLTech) through primary and secondary funding.

The General Corporate Practice of Cyril Amarchand Mangaldas advised and assisted TI Clean Mobility Private Limited in the preparation of deal structuring as well as key documentation keeping in mind the nascency of the sector and regulatory framework on the Transaction. The transaction team was led by Nagavalli G, Partner; with support from Ayushi Mishra, Senior Associate; and Jayant Belgaumkar, Associate.

Other Parties and Advisors to the transaction included AP & Partners (Acted as legal counsel for IPLTech).

As a part of the transaction, TI Clean Mobility Private Limited proposes to make an investment of INR 245.4 crore (approx.) through the primary and secondary rounds of funding. TI Clean Mobility Private Limited proposes to invest INR 150 crores in the primary round and INR 95.40 cr. in the secondary round. Out of INR 95.4 cr., in the secondary round, TI Clean Mobility Private Limited will pay INR 27.8 cr. to the founders of IPLTech and INR 67.6 cr. to the angel investors in IPLTech, to acquire a stake of 65.2% in IPLTech.

After the secondary round of funding, the founders of IPL Tech will retain a stake of 23% in IPLTech. The remaining stake will be held by a few other small shareholders in IPL Tech. The transaction will also allow a few angel investors (both resident and non- residents) to exit IPLTech by selling their shares to TI Clean Mobility Private Limited.

The transaction was signed on July 18, 2022.

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