Greaves Cotton Shares Zoom After Subsidiary Filed Draft Papers For ₹1,000 Crore IPO

On December 24, 2024, Greaves Cotton share price rose over 10% and touched the day high of ₹256.30 at 11:05 AM. The surge in Greaves Cotton shares came after its Electric Vehicle (EV) subsidiary Greaves Electric Mobility Ltd filed its Initial Public Offering (IPO) papers with the Securities and Exchange Board of India (SEBI).

Greaves Electric Mobility IPO consists of two parts: a fresh issue of shares and an Offer for Sale (OFS). The ₹1,000 crore IPO will include a fresh issue of shares worth ₹1,000 crore. This portion of the IPO will increase the company’s equity base.

Greaves Electric Mobility plans to utilise the funds from the fresh issue portion for product research, develop & build battery assembly capabilities and boost manufacturing capacity.

Offer For Sale (OFS)

In addition to the fresh issue, 18.9 crore shares will be sold through an Offer For Sale (OFS) by existing shareholders.

• Greaves Cotton will be selling 5.1 crore shares as part of the OFS.
• Abdul Latif Jameel Green Mobility will be selling 13.8 crore shares through the OFS.

This combination of a fresh issue and an OFS is part of the strategy for Greaves Electric Mobility’s entry into the public market.

About Greaves Electric Mobility Ltd

Greaves Electric Mobility Ltd is engaged in the development of multi-categories of electric vehicles. It offers smart E-scooters for everyday mobility and urban commuting in India. They are focused on delivering products that fulfil the aspirations of their customers. Currently, Greaves Cotton holds a 62.5% stake in Greaves Electric Mobility, while Abdul Latif Jameel Green Mobility holds the remaining stake.

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