Greaves Cotton Injects ₹22 Crore into Greaves Finance

Greaves Cotton Limited (GCL) (NSE: GREAVESCOT) has approved a fresh investment of ~₹22 crore in its wholly owned subsidiary, Greaves Finance Limited (GFL). The investment will be made by subscribing to equity shares offered under a rights issue. This move highlights the company’s continued commitment to expanding its financial services arm.

About Greaves Finance Limited

GFL, incorporated in 1958, is a non-banking financial company (NBFC) specialising in retail e-vehicle financing. It provides lending and related solutions to buyers of electric two-wheelers and three-wheelers, along with lease financing for last-mile delivery players and service aggregators.

As of March 31, 2025, GFL reported a turnover of ₹17.72 crore and a net worth of ₹80.06 crore. The company has shown consistent growth in the last three years, with turnover rising from ₹4.31 crore in FY23 to ₹5.75 crore in FY24, and further to ₹17.72 crore in FY25.

Transaction Details

• Investment Amount: ~₹22 crore
• Mode of Investment: Cash consideration through rights issue
• Nature of Transaction: Related party transaction (since GFL is a wholly owned subsidiary)
• Completion Timeline: On or before September 28, 2025
• Ownership Impact: No change in shareholding; GFL will remain a wholly owned subsidiary of GCL.

Strategic Rationale

The funds raised through this rights issue will be utilised by GFL towards capitalising its borrowings, enabling the NBFC to scale up lending capacity and strengthen its presence in the rapidly growing electric vehicle financing space. This aligns with the government’s EV adoption push and the rising demand for affordable financing solutions in the sector.

Also Read: Titagarh Rail Systems Targets 1,500 Wagons Monthly by FY26!

Conclusion

With this fresh capital infusion, Greaves Finance Limited is positioned to accelerate its growth in EV financing, supporting India’s transition to green mobility. The move underlines Greaves Cotton’s strategy of reinforcing its ecosystem around clean energy and sustainable transportation solutions.

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