Greaves Electric Mobility Strengthens EV Portfolio With Fully Subscribed ₹530 Crore Rights Issue

• Rights issue backed by Greaves Cotton and Abdul Latif Jameel Green Mobility Solutions reinforces long term confidence of the shareholders in GEML’s growth strategy
• Highlights GEML’s industry-beating performance and strong momentum across electric two- and three-wheelers, while reinforcing its commitment to supporting India’s clean mobility goals.

Greaves Electric Mobility Limited (GEML), the e-mobility business of Greaves Cotton Limited and one of India’s leading electric mobility companies consisting of brands Ampere and Greaves 3 Wheelers, announced an additional equity infusion of INR 530 crore through a Rights Issue. The investment is fully subscribed by the existing shareholders in proportion to their existing shareholding, including Greaves Cotton Limited (GCL) and Abdul Latif Jameel Green Mobility Solutions (ALJ), reaffirming their continued confidence in GEML’s strong momentum and its role in advancing India’s clean mobility transition. The investment reinforces the long-term commitment of GEML’s anchor shareholders.

The capital infusion is aimed at strengthening the GEML’s next phase of growth towards building Next Generation products, Battery Management Systems, Power Trains and New age Technology development.

Speaking on the investment, Mr. Karan Thapar, Chairman, Greaves Cotton Limited, said “GCL’s strong balance sheet enables us to support organic growth and selectively invest behind businesses with clear long-term potential. Our continued investment in Greaves Electric Mobility reflects our confidence in its strategic direction, execution capabilities, and role in advancing India’s clean mobility transition. With its manufacturing footprint, engineering depth, expanding portfolio and focus on Building for Bharat, GEML is well placed to sustain its market-outperforming growth and create enduring value.”

The investment will strengthen GEML’s electric two-wheeler and three-wheeler portfolio, deepen technology development and support execution in a competitive, fast-adopting EV market. While GEML has presently decided not to avail itself of the SEBI extension for the proposed Offer, it remains committed to pursuing a public listing at an appropriate time, subject to market conditions, regulatory approvals, and other relevant considerations.

Commenting on the development, Mr. Vikas Singh, Managing Director, Greaves Electric Mobility Limited, said “We are grateful for the full subscription of the rights issue by our existing shareholders. Their continued support reflects strong confidence in Greaves Electric Mobility’s vision, strategy, and execution momentum. As India’s electric mobility market moves towards mass adoption, we remain focused on supporting the country’s clean mobility goals through differentiated products Built for Bharat, stronger technology capabilities, and reliable mobility solutions for our customers. This capital will help us accelerate innovation and further strengthen our product pipeline.”

The investment comes at a time when Greaves Electric Mobility continues to deliver industry-beating performance across both the electric two-wheeler and three-wheeler segments through a growing portfolio of products, an expanding retail and service network, and continued investments in engineering, manufacturing, and customer experience. Its strategic focus remains anchored in democratizing smart and sustainable mobility while delivering solutions that are Built for Bharat.

Greaves Electric Mobility Files DRHP With SEBI; Aims to Raise Rs. 1000 Crore via Fresh Issue

Greaves Electric Mobility Limited, an EV manufacturer known for its Ampere, Eltra and Ele brands and offering a complete suite of vehicles across electric two-wheeler (E-2W) and three-wheeler (3W) segments catering to both B2C and B2B customers for personal and commercial purposes, has filed the draft red herring prospectus (DRHP) with capital markets regulator, SEBI to raise funds through an initial public offering (IPO).

According to the draft red herring prospectus, the Initial Public Offering of the company consists of a Fresh Issue of equity shares aggregating up to Rs. 1000 crores and an Offer for Sale of up to 18,93,98,200 Equity Shares (18.9 crore shares) by the Selling Shareholders. Under the offer for sale component, Greaves Cotton Limited, the Promoter Selling Shareholder will divest 5.1 crore equity shares and Abdul Latif Jameel Green Mobility Solutions DMCC, the Investor Selling Shareholder will divest 138,398,200 Equity Shares (13.8 crore shares).

The company, in consultation with the BRLMs, may consider a Pre-IPO placement aggregating up to Rs. 200 crores, prior to the filing of the Red Herring Prospectus. If the Pre-IPO placement is completed, the fresh issue will be reduced to the extent of such Pre-IPO placement.

Greaves Electric Mobility Limited (GEML) which was established in 2008 proposes to utilize the Net Proceeds of the Fresh Issue towards investment for:

• Product & technology development and enhancing capabilities at its Technology Centre in Bengaluru (Rs. 375.2 crores); 
• Development of in-house battery assembly capabilities (Rs. 82.9 crores);
• Funding expansion of the manufacturing capacity of Bestway Agencies Private Limited (wholly owned Material Subsidiary) (Rs. 19.8 crores); funding expansion of the manufacturing capacity of MLR Auto Limited (a Material Subsidiary) (Rs. 38.2 crores); 
• Increasing company’s stake in MLR through acquisitions (Rs. 73.6 crores); increase digitization and deployment of information technology infrastructure (Rs. 27.8 crores); 
• Funding inorganic growth through unidentified acquisitions and general corporate purposes.

GEML’s vehicle portfolio caters to a diverse customer base, with its offerings spanning E-2W across all three segments - High Speed e-Scooters, City Speed e-Scooters and Low Speed e-Scooters, with models for B2C and B2B use cases, and 3Ws which includes products across the entire spectrum of 3W mobility, which includes electric three-wheelers, internal combustion engine three-wheelers (diesel or CNG) and e-rickshaws, with models for cargo and passenger use cases.

As of September 30, 2024, GEML operated three manufacturing facilities in strategic locations in Ranipet (Tamil Nadu), Greater Noida (Uttar Pradesh) and Toopran (Telangana). The company’s revenue from operations as of Fiscal 2024 was Rs. 611.8 crores and Rs. 302.2 crores for the six months ended September 30, 2024.

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