Greaves Electric Mobility Ltd, the latest electric vehicle company in a thriving market, has filed its Draft Red Herring Prospectus or DRHP with the Securities and Exchange Board of India. The Greaves Mobility IPO will generate ₹1,000 crores, which is $117.5 million in an Initial Public Offering, which is a major leap towards this bold journey towards ambitious growth undertaken by the company. The announcement, dated 23rd December 2024 reflects Greaves’s interest in innovation, sustainability and leadership of the aggressive ev market.
Greaves Mobility IPO Structure and Key Details
The proposed IPO consists of two elements:
- Fresh Issue of Equity Shares: Worth ₹1,000 crore. The fresh issue will generate fresh capital for the company.
- Offer for Sale: The number of existing shares put on the selling list by OFS will include up to 18.94 crore. Greaves Cotton Ltd, the parent firm, will be selling approximately 5.1 crore and Abdul Latif Jameel Green Mobility Solutions DMCC would sell nearly 13.84 crore.
Greaves Cotton owns 62.48% of Greaves Electric Mobility, while Abdul Latif Jameel owns 36.44%. After the IPO, these percentages will decline, opening up the equity to a larger number of investors.
Greaves Mobility IPO Proceeds Utilization
The IPO’s earnings will be utilized to:
- Enhance R&D capabilities to develop next-generation EV technologies.
- Develop next-generation electric scooters, three-wheelers, and other mobility solutions.
- Set up in-house battery manufacturing facilities to keep up with the increasing demand for EVs.
- Eliminate dependence on third-party vendors to achieve cost-effectiveness and supply chain stability.
- Increase the production capacity at subsidiaries such as Bestway Agencies Private Ltd and MLR Auto.
- Buy a more significant percentage of MLR Auto to streamline and make operations efficient.
Competitive Dynamics and Market Position
Greaves Electric Mobility joins the likes of Ather Energy and Ola Electric to raise public markets to fuel their growth. Competition is stiff with companies seeking to dominate a market expected to grow exponentially over the next decade. Industry players see Greaves’s IPO as a declaration of its intent to expand operations and gain a competitive advantage.
On the IPO, Sanjay Behl, CEO, said, “Our mission is to redefine urban mobility through sustainable and innovative solutions. This IPO is a pivotal step toward realizing our vision and expanding our footprint across India.”
Greaves Mobility IPO: Market Reacts
News about filing an IPO has been highly exciting in the minds of investors and other stakeholders. Greaves Cotton’s share price is risen more than 8% following this news, indicating that market confidence regarding growth is highly developed for this company.
ELCTRIK Speaks
Greaves Electric Mobility’s IPO would mark a milestone moment both for the company and in the broader Indian EV landscape. For investors, the prospect of an initial public offering presents an exciting chance to accompany the journey of change for one of the most exciting sectors in the country.