Shares of Greaves Cotton skyrocketed over 11 percent on December 24 as investors lapped up shares of the company after its arm, Greaves Electric Mobility Limited (GEML) filed draft red herring prospectus with the market regulator Securities and Exchanges Board of India (SEBI).
Following the news, shares of Greaves Cotton were trading at Rs 253.10 on the NSE. Spurred by gains in today's session, the stock hit a day's high of Rs 257.40 on the NSE, coming at a kissing distance of its record high of Rs 259.49.
Meanwhile, the trading volumes in the counter also soared, further cementing the rally in its shares. As much as one crore shares changed hands on the exchanges so far, already surpassing the one-month daily traded average of 92 lakh shares.
Shares of Greaves Cotton have zoomed over 45 percent in the past one month, largely driven by the board's approval of the public offer for the subsidiary's market listing. GEML's IPO will include a fresh issue of equity shares along with an offer for sale by existing shareholders.
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The proposed issue will consist of a fresh issuance of equity shares worth up to Rs 1,000 crore, along with an offer for sale (OFS) of up to 51,000,000 shares by Greaves Cotton and up to 138,398,200 shares by Abdul Latif Jameel Green Mobility Solutions DMCC.
Meanwhile, sentiment for Greaves Cotton also strengthened after ace investor Vijay Kedia picked up a 0.5 percent stake in the company earlier this month. In addition, fund houses such as Dimensional Fund Advisors, Sundaram Asset Management Company, and Motilal Oswal Asset Management have also acquired shares in the company during the December quarter, according to Bloomberg data.
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