Upcoming IPO: Greaves Electric Mobility Secures SEBI Nod for ₹1,000 Crore IPO

Greaves Electric Mobility Ltd, the electric vehicle subsidiary of Greaves Cotton, has received the green light from the Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO), the market regulator confirmed on Tuesday.

Greaves Electric Mobility IPO Details

Greaves Electric Mobility IPO will consist of a fresh equity issuance worth ₹1,000 crore, along with an Offer for Sale (OFS) of 18.9 crore shares by existing stakeholders.

Under the OFS, parent company Greaves Cotton will divest 5.1 crore shares, while Abdul Latif Jameel Green Mobility Solutions DMCC is set to offload 13.8 crore shares.

Use of IPO Funds

The proceeds from the fresh issue are earmarked for a range of strategic initiatives. These include ₹375.2 crore for R&D and the development of new products and technologies at the company’s Bengaluru Technology Centre, ₹82.9 crore for establishing in-house battery assembly capabilities, and ₹19.8 crore to scale manufacturing operations at Bestway Agencies Private Limited.

Additional investments include ₹38.2 crore to enhance production capacity at MLR Auto Limited and ₹73.6 crore to boost the company’s stake in MLR through acquisitions. Moreover, ₹27.8 crore is allocated for strengthening digital infrastructure and IT systems. The remaining funds will be utilised for potential acquisitions and general corporate purposes.

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About Greaves Electric Mobility Limited

Greaves Electric Mobility offers a comprehensive portfolio of electric two-wheelers (E-2Ws) and three-wheelers (E-3Ws), catering to both personal and commercial segments. Its flagship brand ‘Ampere’ is a prominent name in the E-2W space, while its E-3Ws are sold under the ‘Ele’ brand.

As of September 30, 2024, the company operated three manufacturing facilities located in Ranipet (Tamil Nadu), Greater Noida (Uttar Pradesh), and Toopran (Telangana). For the fiscal year ending March 2024, it reported a revenue of ₹611.8 crore, with ₹302.2 crore in revenue for the first half of FY2025.

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