Greaves Electric Mobility has received approval from SEBI for its upcoming initial public offering (IPO), aiming to raise Rs 1,000 crore. The electric two-wheeler maker plans to expand its product offerings and manufacturing capabilities, competing with major brands like Ola Electric and Ather Energy.
Details of the IPO
The Bengaluru-based electric vehicle maker which is part of Greaves Cotton Ltd, plans to issue fresh shares worth Rs 1,000 crore. The IPO also includes an offer for sale where investors and promoters will sell up to 18.94 crore shares. Greaves Cotton Ltd holds a 62.5 per cent stake, with Abdul Latif Jameel Green Mobility owning the remaining portion.
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Plans for growth and expansion
Greaves Electric intends to use IPO proceeds to boost product development, build battery assembly capabilities, and expand manufacturing.
Rs 375 crore will be allocated to tech and product enhancement, while Rs 83 crore will be used to set up a battery assembly line in Tamil Nadu by 2027. Also, the company plans to increase its stake in MLR Auto Ltd to enhance its presence in the three-wheeler segment.
Financials and future outlook
Despite a challenging year, Greaves Electric is focusing on expanding its product range, including more electric two-wheelers and three-wheelers. In FY24, the company reported a revenue decline of 45.5 per cent, but three-wheeler sales grew significantly. The company plans to increase its production capacity and aims to double its three-wheeler output by FY27.
