Tube Investments of India (TII) has announced a significant investment in its subsidiary, 3xper Innoventure Limited, as part of a strategic move to bolster its operations. The company, along with Mr. N Govindarajan, has entered into a Supplementary Agreement to invest a total of ₹100 crore in 3xper through the subscription of Compulsorily Convertible Preference Shares (CCPS).
TII will contribute ₹75 crore, while Mr. N Govindarajan will invest ₹25 crore. This investment aims to enhance the capabilities of 3xper, which operates in the pharmaceutical industry’s Contract Development and Manufacturing Operations sector. The funds are intended to scale up 3xper’s operations and that of its subsidiary.
3xper is already a subsidiary of TII, with the latter holding 0.95 crore equity shares and 284.05 crore Series A CCPS, each with a face value of ₹100. The new investment will see the issuance of 1 crore CCPS at a face value of ₹100 each, totalling ₹100 crore, to TII and Mr. Govindarajan.
The agreement retains the significant terms of the original agreement between TII, 3xper, and Mr. Govindarajan, focusing on the investment in CCPS. The transaction is structured as a related party transaction but will be conducted at arm’s length, ensuring fair value.
The completion of this investment is contingent upon the satisfactory fulfilment of certain Conditions Precedent outlined in the Supplementary Agreement. These conditions must be met before the transaction can be finalised.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).