EV-maker Greaves Electric Mobility files IPO papers, seeks Rs 1,000 crore

Greaves Electric Mobility Limited (GEML), the electric vehicle (EV) maker behind brands like Ampere, Eltra, and Ele, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) to raise Rs 1,000 crore through an initial public offering (IPO).

 

The IPO includes a fresh issue of equity shares worth Rs 1,000 crore and an offer-for-sale of up to 189.3 million equity shares by Greaves Cotton Limited and Abdul Latif Jameel Green Mobility Solutions DMCC.

 

The company plans to utilise the net proceeds from the fresh issue to bolster its operations. A significant portion, Rs 375.2 crore, will be directed towards enhancing product and technology development, particularly at its Bengaluru Technology Centre. Furthermore, the company aims to develop in-house battery assembly capabilities with an allocation of Rs 82.9 crore.

 

To support manufacturing growth, Rs 58 crore will be invested in expanding the capacities of its subsidiaries, Bestway Agencies Private and MLR Auto. Additionally, Rs 27.8 crore will be allocated towards digitising and upgrading its IT infrastructure. The remaining funds will be utilised for inorganic growth through potential acquisitions and general corporate purposes.

 

As of September 30, 2024, GEML operates three manufacturing facilities located in Ranipet (Tamil Nadu), Greater Noida (Uttar Pradesh), and Toopran (Telangana). The company reported revenue from operations of Rs 611.8 crore for the financial year ending March 31, 2024, and Rs 302.2 crore for the first half of FY25.

 

Established in 2008, GEML offers a range of electric two-wheelers (E-2Ws) and three-wheelers (3Ws) for both B2C and B2B customers. Its E-2W portfolio spans high-speed, city-speed, and low-speed e-scooters, catering to personal and commercial needs. The 3W offerings include electric three-wheelers, internal combustion engine (ICE) three-wheelers running on diesel or CNG, and e-rickshaws designed for passenger and cargo use cases.

 

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