Greaves Electric Mobility, a manufacturer of electric vehicles, has submitted a draft red herring prospectus (DRHP) for its IPO. The company intends to sell up to 189.4 million shares to its promoter and investors in order to raise Rs 1,000 crore (Rs 10 billion) through a new share offering.
Based in Bengaluru Greaves Cotton Ltd.’s electric mobility division is called Greaves Electric. It produces and markets three-wheelers under the Ele and other names, as well as two-wheelers under the Ampere brand. The business faces competition from big players like Hero MotoCorp, TVS Motor, Bajaj Auto, Ather Energy, and Ola Electric.
The company will issue equity shares having a face value of Rs 1 and list them on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), per the DRHP submitted to the market regulator SEBI.
The offer of sales component includes up to 138.4 million shares from investor Abdul Latif Jameel Green Mobility Solutions DMCC and up to 51 million shares from parent business Greaves Cotton Ltd.
Currently, Greaves Cotton holds a 62.5% stake in Greaves Electric, while Abdul Latif Jameel Green Mobility holds the remaining stake. Greaves Electric plans to use the net proceeds of the fresh issue for product research and development, build in-house battery assembly capabilities, and boost manufacturing capacity to meet growing demand for electric vehicles. The company aims to strengthen its position in the EV market, accelerate production, and enhance technology, contributing to sustainable transportation solutions in India.