Greaves Cotton shares soar 9% as Vijay Kedia buys stake worth Rs 25 crore

Greaves Cotton shares have rallied 40 percent since the start of the year, outpacing the Nifty's gain of 13 percent over the same time frame.

Shares of Greaves Cotton rallied 9 percent to Rs 232 in morning trade on December 10, extending gains for a second session in a row, as ace investor Vijay Kedia acquired 12 lakh shares through a block deal, representing a 0.52 percent equity in the company.

A deal worth Rs 25 crore, this transaction could be the first time the market veteran has taken a bet on the company. Shares of Greaves Cotton jumped 8 percent in Monday’s trade, hitting a 52-week high of Rs 215 on the NSE. A block deal drove trading volumes to over one crore shares.

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The acquisition of Greaves Cotton by Kedia comes ahead of the proposed listing of its electric vehicle arm. Earlier this month, the company’s board approved the IPO of its subsidiary, Greaves Electric Mobility Ltd (GEML), which will include a fresh issue of equity shares and an offer for sale by existing shareholders.

Greaves Cotton reported a net loss of Rs 14 crore in Q2FY25, a significant improvement from the Rs 375 crore loss in the same quarter last year. Revenue from operations fell 3 percent year-on-year to Rs 705 crore from Rs 727 crore. Meanwhile, EBITDA stood at Rs 22 crore, down 52.17 percent, with margins dropping 320 basis points to 3.12 percent from 6.32 percent in Q2FY24.

Greaves Cotton produces internal combustion engines, power generation equipment, and power transmission systems. It also manufactures mining, oilfield, construction, and material handling equipment, along with integrated systems and electronics.

At about 9:20 am, shares of the company were trading at Rs 227, higher by 6.8 percent from the last close on the NSE. Greaves Cotton shares have rallied 40 percent since the start of the year, outpacing the Nifty's gain of 13 percent over the same time frame.

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