MGL investment in 3ev amplifies automobile advancement

February 14, 2024 3:35 pm

The investment will be made in tranches and is subject to standard closing provisions. The first tranche is expected to be invested before the end of the month.

Mahanagar Gas Limited (MGL) signed a Share Subscription Agreement (SSA) with 3EV Industries Pvt. Ltd. (3ev) an equity infusion of ₹.96 crore in the company. The investment will be made in tranches and is subject to regular closing provisions. The first tranche is planned to be invested before the end of the 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. Its premium EVs are used to serve the transportation needs of leading e-commerce, retail, and last-mile logistics companies. The business will use the investment to increase production capacity to meet rising customer demand, fund R&D initiatives focusing on electronics efficiency, and expand aftermarket services such as battery-as-a-service (BaaS).

Speaking on the occasion, Ashu Shinghal, Managing Director of Mahanagar Gas Limited, said, “MGL, since its inception, has been a proponent of a 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 the setting up of charging or swapping facilities, which can help 3ev expand its business through an assured charging infrastructure for its customers.” Shinghal reiterated, “MGL is strengthening its core sector business while 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 of the EV sector and believes that participation in the EV value chain is critical to supporting the sector during its emerging phase.”

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.