Greaves Electric Mobility files draft papers for IPO

Short call throws light on eventful market moments

Greaves Electric Mobility Ltd, the Electric Vehicle division of Greaves Cotton Ltd, has filed draft papers with the Securities and Exchange Board of India (SEBI) to raise funds via an Initial Public Offering (IPO). The IPO includes a fresh issue of Rs 1,000 crore and an Offer for Sale (OFS) of up to 18.94 crore shares by existing promoters and shareholders.

As part of the OFS, Greaves Cotton will sell 5.1 crore shares, while Abdul Latif Jameel Green Mobility Solutions DMCC will divest around 13.84 crore shares. Currently, Greaves Cotton Ltd has a 62.48 percent stake while Abdul Latif Jameel Green Mobility Solutions DMCC has a 36.44 percent stake in the firm.

The proceeds from the fresh issue will be utilized for product and technology development, enhancing capabilities at the company’s Technology Centre in Bengaluru, and developing in-house battery assembly capabilities.

Additionally, the funds will support the expansion of manufacturing capacity at Bestway Agencies Private Ltd and MLR Auto, along with increasing the company’s stake in MLR Auto through acquisitions. Other areas of focus include digitization and IT infrastructure deployment, funding inorganic growth through acquisitions, and general corporate purposes.

Greaves Electric Mobility Ltd is among the pioneers in India’s evolving electric vehicle (EV) market and has been at the forefront of driving EV adoption. The company offers a diverse portfolio of electric two-wheelers (E-2Ws) and three-wheelers (E-3Ws) catering to B2C and B2B customers for personal and commercial use. Its E-2W portfolio spans high-speed scooters (top speeds above 65 kmph), city-speed scooters (25–65 kmph), and low-speed scooters (under 25 kmph), serving both individual and commercial use cases. In the three-wheeler segment, the company offers electric three-wheelers (L5 E-3Ws), internal combustion engine three-wheelers (L5 ICE-3Ws), and e-rickshaws (L3 E-3Ws) for cargo and passenger needs.

As of September 30, 2024, Greaves Electric Mobility operated three manufacturing facilities strategically located in Ranipet (Tamil Nadu) for E-2Ws, Greater Noida (Uttar Pradesh) for L3 E-3Ws, and Toopran (Telangana) for L5 E-3Ws and ICE-3Ws.

For FY24, the company reported a revenue of Rs 611.82 crore, down from Rs 1,121.57 crore in FY23. Net loss widened significantly to Rs 691.57 crore compared to Rs 19.91 crore in the previous year. For the six months ending September 2024, the company posted a revenue of Rs 302.23 crore and a net loss of Rs 106.15 crore.

Motilal Oswal Investment Advisors, IIFL Capital, and JM Financial are the lead managers for the issue. At 11.05am, shares of Greaves Cotton was trading at Rs 254.70 on BSE, up 11 percent from its previous close.