Greaves Electric Mobility Files ₹1,000 Crore IPO Proposal with SEBI

Greaves Electric Mobility Ltd., a division of Greaves Cotton Ltd. focused on electric vehicles, has submitted its Initial Public Offering (IPO) proposal to the Securities and Exchange Board of India (SEBI).

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The ₹1,000 crore IPO comprises a mix of a fresh issue of shares and an Offer for Sale (OFS). The fresh issue accounts for ₹1,000 crore, while Greaves Cotton and Abdul Latif Jameel Green Mobility will collectively offload 18.9 crore shares through the OFS. Specifically, Greaves Cotton plans to sell 5.1 crore shares, and Abdul Latif Jameel Green Mobility Solutions DMCC intends to divest 13.84 crore shares. Currently, Greaves Cotton holds a 62.48% stake in the company, while Abdul Latif Jameel owns 36.44%.

Earlier this month, Greaves Cotton's board approved its participation in the OFS for the upcoming IPO. However, the IPO's price band and launch dates have not yet been finalized.

On Monday, Greaves Cotton's stock closed at ₹229.5, down by 1.2%, though it has surged by 50% in 2024.

Proceeds from the IPO's fresh issue will be allocated to developing new products and technologies, enhancing the company’s Bengaluru Technology Centre, and establishing in-house battery assembly capabilities. Additional funds will support the expansion of manufacturing capacities at Bestway Agencies Private Ltd and MLR Auto, increasing the stake in MLR Auto through acquisitions, digitizing operations, improving IT infrastructure, funding acquisitions for inorganic growth, and general corporate purposes.

Greaves Electric Mobility is a key player in India’s electric vehicle market, offering a comprehensive range of electric two-wheelers (E-2Ws) and three-wheelers (E-3Ws) for both personal and commercial use. The E-2W lineup includes high-speed scooters (above 65 kmph), city-speed scooters (25–65 kmph), and low-speed scooters (below 25 kmph). In the E-3W segment, the company produces electric three-wheelers (L5 E-3Ws), internal combustion engine three-wheelers (L5 ICE-3Ws), and e-rickshaws (L3 E-3Ws) for cargo and passenger applications.

As of September 30, 2024, the company operated three manufacturing facilities in Ranipet (Tamil Nadu), Greater Noida (Uttar Pradesh), and Toopran (Telangana), catering to different segments of E-2Ws and E-3Ws.

In FY24, Greaves Electric Mobility reported a revenue of ₹611.82 crore, a significant drop from ₹1,121.57 crore in FY23, with its net loss widening to ₹691.57 crore from ₹19.91 crore the previous year. For the six-month period ending September 2024, the company reported a revenue of ₹302.23 crore and a net loss of ₹106.15 crore.

Motilal Oswal Investment Advisors, IIFL Capital, and JM Financial are the lead managers for this IPO.