Greaves Electric Mobility IPO: EV Maker Files Papers With Sebi, Aims To Raise Rs 1,000 Crore – News18

Last Updated:December 24, 2024, 18:07 IST

Greaves Electric Mobility IPO: The company may raise Rs 200 crore through a pre-IPO placement.

Greaves Electric Mobility IPO: The electric vehicle manufacturer, has submitted draft papers to the capital markets regulator Sebi to raise funds through an initial public offering.

Greaves Electric Mobility IPO DRHP Sebi

The upcoming IPO of Greaves Electric Mobility Limited (GEML) includes a combination of a fresh issue of equity shares worth Rs 1,000 crore and an Offer for Sale (OFS) of 18.9 crore shares by selling shareholders, according to the draft papers filed on Monday.

OFS Breakdown

As part of the OFS, the promoter Greaves Cotton will divest 5.1 crore equity shares, while investor Abdul Latif Jameel Green Mobility Solutions DMCC will offload 13.8 crore shares.

Pre-IPO Placement Option

The company may raise Rs 200 crore through a pre-IPO placement. If this placement occurs, the fresh issue size will be reduced accordingly.

Utilisation of IPO Proceeds

The proceeds from the fresh issue will be allocated to various strategic initiatives:

• Rs 375.2 crore for product and technology development at the Bengaluru Technology Centre
• Rs 82.9 crore for developing in-house battery assembly capabilities
• Rs 19.8 crore for expanding the manufacturing capacity of Bestway Agencies Private Limited
• Rs 38.2 crore to expand MLR Auto Limited’s manufacturing capacity
• Rs 73.6 crore to increase the company’s stake in MLR through acquisitions
• Rs 27.8 crore for enhancing digitisation and IT infrastructure
• Funds for inorganic growth through acquisitions and general corporate purposes

Manufacturing Footprint

As of September 30, 2024, GEML operates three manufacturing facilities in strategic locations: Ranipet (Tamil Nadu), Greater Noida (Uttar Pradesh), and Toopran (Telangana).

About Greaves Electric Mobility

Greaves Electric Mobility is known for its ‘Ampere’ brand of electric scooters and also manufactures three-wheelers under a separate brand. The company offers a range of electric vehicles in the two-wheeler (E-2W) and three-wheeler (3W) segments, catering to both B2C and B2B customers for personal and commercial use.

Financial Performance

For fiscal 2024, the company reported a revenue from operations of Rs 611.8 crore. For the six months ended September 30, 2024, the revenue stood at Rs 302.2 crore.

IPO Book Running Lead Managers

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