A subsidiary of Reliance Industries Ltd, controlled by billionaire Mukesh Ambani, announced the acquisition of a stake in electric vehicle (EV) technology and solutions company Altigreen Propulsion Labs Pvt Ltd for Rs 50.16 crore.
“Reliance New Energy Ltd (RNEL), a wholly-owned subsidiary of the company, has entered into an agreement with Altigreen for the subscription of 34,000 Series-A Compulsorily Convertible Preference Shares of face value Rs 100 each for an aggregate consideration of Rs 50.16 crore,” Reliance said in a stock exchange filing.
The investment is part of the company’s strategic intent of collaborating with innovative companies in new energy and new mobility ecosystems, the deal is expected to close before the end of March, RIL added.
Incorporated in India on February 8, 2013, its turnover in the fiscal year 2019, FY20 and FY21 stood at Rs 193.53 lakh, Rs 61.62 lakh and Rs 103.82 lakh, respectively.
The acquisition is not a related party transaction and none of RIL’s promoter, promoter group or group companies has any interest in the entities involved in the transaction, the filings further said.
Altigreen was founded by Amitabh Saran, Lasse Mocklegaard, Shailendra Gupta and John Bangura in 2012. It had raised $2 million from Jupiter Capital earlier.
On December 23, Altigreen announced it was delivering over 15,000 road-ready electric vehicles to MoEVing which provides solutions to e-commerce, e-grocery, fast-moving consumer goods (FMCG), logistics and direct-to-consumer (D2C) companies to optimise their logistics costs and reduce carbon emissions.
Altigreen had bagged the order worth Rs 75 crore and is ramping up its manufacturing capabilities to begin deliveries from Q1 of FY23.
Electric mobility space has received continued interest from investors and conglomerates thus forming a partnership with startups to extend EV charging stations.
On January 26, the joint venture of RIL and energy major BP opened one of the country’s largest EV charging hubs in Delhi, as the duo scaled up the fuel retail network, offering multiple fuel choices including EV charging infrastructure.
Reliance BP Mobility Ltd (RBML) JV had also tied up with Gurugram-based BluSmart to set up electric vehicle charging infrastructure.