Greaves Cotton shares rally 3.6% as arm Greaves Electric Mobility gets SEBI's nod to float IPO: 10 things you need to know

The proposed IPO

• The proposed IPO is a combination of a fresh issue of equity shares worth ₹1,000 crore and an offer for sale (OFS) of 18.9 crore shares by the selling shareholders, according to the draft papers filed in December.

• Under the OFS, promoter Greaves Cotton will divest 5.1 crore equity shares and investor Abdul Latif Jameel Green Mobility Solutions DMCC will offload 13.8 crore shares.

• As per the update, the company, which filed its preliminary IPO papers with SEBI in December 2024, obtained the regulator's observations on May 8.

Utilisation of funds

• The company, according to reports, said that the proceeds from the fresh issue will be utilised for various strategic initiatives, including ₹375.2 crore for product and technology development at the Bengaluru Technology Centre. Besides, ₹82.9 crore will be used for developing in-house battery assembly capabilities, and ₹19.8 crore for expanding the manufacturing capacity of Bestway Agencies Private Limited.

• Additionally, ₹38.2 crore will be allocated to expand MLR Auto Limited's manufacturing capacity, ₹73.6 crore to increase the company's stake in MLR through acquisitions, ₹27.8 crore to enhance digitisation and IT infrastructure, and funds will also be used to support inorganic growth through acquisitions and general corporate purposes.

About Greaves Electric Mobility

• Greaves Electric is recognised for its 'Ampere' brand of electric scooters and also produces three-wheelers under a separate brand name. The company offers a complete suite of vehicles across the electric two-wheeler (E-2W) and three-wheeler (3W) segments, catering to both B2C and B2B customers for personal and commercial purposes.

• As of September 30, 2024, GEML operated three manufacturing facilities in strategic locations in Ranipet (Tamil Nadu), Greater Noida (Uttar Pradesh) and Toopran (Telangana).

Greaves Electric Mobility financials

• The company's revenue from operations as of fiscal 2024 was ₹611.8 crore and ₹302.2 crore for the six months ended September 30, 2024.

• Shares of Ola Electric and Ather Energy will also be in focus today as Greaves Electric Mobility is a direct competitor of both the companies. Both firms are major players in the Indian electric two-wheeler market, and Greaves Electric Mobility is vying for market share with companies like Ola Electric, Ather Energy, and others.

About Greaves Cotton

» Greaves Cotton Limited (GCL), also known as Greaves, is a diversified, multi-product, multi-fuel, and multi-location engineering company.