New Delhi: Mahanagar Gas Limited (MGL) signed a Share Subscription Agreement (SSA) with 3EV Industries Pvt. Ltd (3ev) for an equity infusion of INR 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,” the company said in a statement.
Established in 2019, 3EV Industries has carved a niche in manufacturing L5 category three-wheel cargo, passenger, and ICE-to-EV converted electric vehicles, serving the burgeoning needs of e-commerce, retail, and last-mile logistics companies. The funds from MGL will be utilized to enhance production capacity, support R&D projects focusing on electronics efficiency, and develop aftermarket services, including an innovative Battery-as-a-Service (BaaS) model.
“MGL has always been a proponent of a greener environment,” said Ashu Shinghal, Managing Director of Mahanagar Gas Limited. He elaborated on the investment’s role in strengthening the EV ecosystem for last-mile logistics, accelerating the replacement of diesel vehicles, and significantly cutting down the carbon footprint. Shinghal further mentioned MGL’s capacity to support 3EV Industries’ growth through the establishment of charging or swapping facilities, underlining the strategic alignment with MGL’s investment in the emerging EV sector to enhance its presence in the energy value chain.
Peter Voelkner, Managing Director, 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,” he added.
The transaction was facilitated by CRISIL and HDFC Bank, serving as transaction advisors to MGL and 3EV Industries, respectively, marking a pivotal step in advancing India’s shift towards sustainable transportation solutions.
