Greaves Cotton to acquire electric vehicle company Ampere; stock surges 12%

The stock hit a 52-week high of Rs 165, up 12% on the BSE, trading close to its all-time high of Rs 178 touched on May 4, 2017 in intra-day trade.

Shares of Greaves Cotton hit a 52-week high of Rs 165 per share, up 12% on the BSE in an otherwise rang bound market after the company said it will acquire a majority stake in Coimbatore-based electric vehicle (EV) company Ampere Vehicles.

The stock was trading close to its all-time high of Rs 178 touched on May 4, 2017, on the BSE in intra-day trade.

Ratan Tata-backed Ampere has in-house capabilities in designing, developing, manufacturing & marketing electric vehicles with a wide range of applications.

“Greaves Cotton has entered into definitive agreements pursuant to which Greaves Cotton will acquire a majority stake in EV Company Ampere Vehicles Pvt. Ltd, subject to customary closing conditions. This acquisition will accelerate the development of clean energy technology solutions for mobility needs of passengers and small businesses,” the company said in a press release.

Greaves aims to create enhanced value for its shareholders by investing in advanced clean energy technologies through partnerships in India and worldwide. This acquisition in the electric mobility segment underscores the strategic intent of Greaves, it added.

At 10:34 am; Greaves Cotton was trading 9% higher at Rs 160, as compared to 0.09% decline in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 5.65 million equity shares changed hands on the BSE and NSE so far.