RIL inks $6.6Mn deal with EV tech and solutions company Altigreen

Reliance New Energy Limited (RNEL), a wholly owned subsidiary of Reliance Industry Ltd (RIL), has recently announced investment worth $6.6 million in Altigreen Propulsion Labs Private Limited, also known as Altigreen.

The Mukesh Ambani-led conglomerate’s arm, RNEL will purchase mandatory convertible preference shares of the Bengaluru-based EV company, the transaction for which is expected to close before March.

Altigreen provides electric vehicle technology solutions catering to commercial last mile transportation of two, three and four wheelers.

According to RIL, the investment builds upon the conglomerate’s strategic plan for pursuing innovative companies in the field of new energy and new mobility.

As of now, RIL has refrained from unveiling the stake it will hold in Altigreen after conversion of shares.

Altigreen claims presence in 60 countries and 26 global patents. The company develops all of its vehicles including the recently developed E3 model in-house in Bangalore on a 100% indigenous mobility platform.

The electric vehicle company’s annual turnover has been inconsistent ever since its inception in 2013, with $2.5 million (Rs 193 lakh) in fiscal year 2019 followed by $811,000 (Rs 61.62 lakh) in FY20 whereas FY21 showcased $1.3 million (Rs 103.82 lakh) turnover.

Since the acquisition does not involve related-party transaction with no desire of any of RIL’s promoter, group companies or promoter group in the above entities, the transaction will not require any regulatory or government approval.

Major conglomerates in India including Tata Group, RIL and Adani Group have forayed into the space of electric mobility, helping establish a solid network between companies for expanding the EV charging platforms.

Last year, Reliance BP Mobility Limited, a fuel & mobility joint venture led by RIL and BP, introduced its first mobility station in Navi Mumbai, branded as Jio-bp.

The JV is aiming for expanding the network of EV charging and battery swap stations at various mobility stations as well as other independent locations.

Source Credit: https://www.moneycontrol.com/news/business/economy/ril-invests-rs-50-16-crore-in-bengaluru-based-ev-tech-company-altigreen-8070151.html