Mahanagar Gas Limited (MGL) signed a Share Subscription Agreement (SSA) with 3EV Industries Pvt. Ltd (3ev) on Monday 12th February 2024 for an equity infusion of Rs. 96 crore in the company. The investment, which is to be made in tranches, is subject to normal closing provisions. The first tranche is expected to be invested before the end of this month.
3EV Industries is an Electric Vehicle OEM established in 2019 in Bangalore, Karnataka. The company manufactures L5 category three-wheel cargo, passenger, and ICE-to-EV converted electric vehicles. It’s premium EVs are used to serve the transportation needs of leading e-commerce, retail, and last mile logistics companies. The investment will be used by the company to ramp up production capacity to meet increasing customer demand, support R&D projects focused on electronics efficiency, and further develop aftermarket services including Battery-as-a-Service (BaaS).
Speaking on the occasion, Mr. Ashu Shinghal, Managing Director of Mahanagar Gas Limited said, “MGL, since its inception, had been a proponent of greener environment. This investment would help strengthen the EV ecosystem for the last mile logistics segment, facilitate faster adoption primarily replacing diesel vehicles and significantly reduce the carbon footprint. MGL can additionally facilitate setting up of charging or swapping facilities which can help 3ev expand its business through assured charging infrastructure to its customers.” Mr. Shinghal reiterated, “MGL is strengthening its core sector business and simultaneously positioning itself in the emerging sectors. Investment in the EV sector will further supplement our presence in the energy value chain. MGL maintains a holistic view in the EV sector and believes that participation in the EV value chain is critical to support the sector during its emerging phase.”
Mr. Peter Voelkner, Managing Director of 3ev said, “We are deeply honored to have MGL demonstrate its confidence in our business, management team, and future prospects by investing in 3ev. There are substantial synergies between MGL and our growing business as an EV technology platform, not only through the accelerated adoption of EVs, but critically in the emerging battery ecosystem including 3ev’s proprietary BaaS model. Our focus on total life-cycle management enabling highly competitive TCOs for EV users, their customers, and other stakeholders, gives our clean technology a clear value proposition in the marketplace. With MGL’s valuable support we see many opportunities to rapidly increase the penetration and commercialization of EVs in India and beyond.”
CRISIL was the transaction advisor to MGL. HDFC Bank was the transaction advisor to 3ev.