 "Upcoming IPO: EV player Greaves Electric Mobility files DRHP with Sebi")
Electric vehicle maker and Greaves Cotton's material subsidiary, Greaves Electric Mobility, is planning to go public. The company has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for its Initial Public Offering (IPO). This comes almost three months after leading EV player Ola Electric Mobility went public in August this year.
According to the documents filed, Greaves Electric Mobility IPO consists of both a fresh issue of shares worth around Rs 1,000 crore, and an Offer for Sale (OFS), with Greaves Cotton and Abdul Latif Jameel Green Mobility offloading up to 189 million equity shares of the company. Prior to the public offering, Greaves Cotton owned a 62.5 per cent stake in Greaves Electric, with Abdul Latif Jameel Green Mobility Solutions holding the remaining shares.
The proceeds from the offer for sale will go to the shareholders participating in the OFS, while Greaves Electric Mobility intends to use the proceeds from the fresh issue of shares for product research, development, and building battery assembly capabilities, as well as boosting manufacturing capacity. Greaves Electric Mobility also plans to utilise the proceeds for general corporate purposes.
Meanwhile, the shares of Greaves Cotton zoomed 15.18 per cent to hit a fresh high of Rs 264 on the BSE during intra-day trade, following news of the Greaves Electric Mobility IPO. At around 1:51 pm on Tuesday, December 24, Greaves Cotton shares were quoted at Rs 261.10, up 13.92 per cent from their previous close of Rs 229.20 on the BSE.
Greaves Cotton is a diversified, multi-product engineering conglomerate with operations across multiple locations. The company provides fuel-agnostic powertrain solutions, e-mobility aftermarket and retail solutions, and auxiliary power systems. The company’s subsidiary, Greaves Electric Mobility, operates in the electric vehicle (EV) market, offering a range of electric two-wheelers and three-wheelers for both personal and commercial use, catering to B2C and B2B customers.