Ola Electric-rival Greaves Electric Mobility files for ₹1,000cr IPO
Greaves Electric Mobility, a leading electric vehicle (EV) manufacturer, has filed draft papers with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The IPO in question includes a fresh issuance of equity shares worth ₹1,000 crore, and an Offer for Sale (OFS) of 18.9 crore shares by existing shareholders. This is a major step in the company's growth strategy.
Shareholder stakes and divestment
The OFS will witness Greaves Cotton, the promoter of Greaves Electric Mobility, offloading 5.1 crore equity shares. Investor Abdul Latif Jameel Green Mobility Solutions DMCC also plans to sell 13.8 crore shares. Currently, Greaves Cotton holds a 62.48% stake in the firm, while Abdul Latif Jameel Green Mobility Solutions DMCC owns a 36.44% stake.
Diverse product portfolio
Greaves Electric Mobility is famous for the 'Ampere' brand of electric scooters, but it also makes three-wheelers under a different brand. The company's portfolio comprises electric two-wheelers (E-2Ws) and three-wheelers (E-3Ws) for personal and commercial use. Its E-2W portfolio includes high-speed scooters with top speeds exceeding 65km/h, city-speed scooters between 25-65km/h, and low-speed scooters with speeds below 25km/h.
Pre-IPO placement and fund allocation
Greaves Electric Mobility is looking to raise ₹200 crore via a pre-IPO placement. If this placement goes through, the size of the fresh issue will be decreased accordingly. The sum raised from the fresh issue will be used for several strategic initiatives. These include product and technology development at Bengaluru Technology Centre, improving in-house battery assembly capabilities, and raising manufacturing capacity of Bestway Agencies Private Limited.
Financial performance and future plans
As of September 30, Greaves Electric Mobility has three manufacturing plants in Ranipet (Tamil Nadu), Toopran (Telangana), and Greater Noida (Uttar Pradesh). The company had revenue from operations of ₹611.8 crore for FY24 and ₹302.2 crore for the six months ending September 30, 2024. However, it also recorded a net loss of ₹691.57 crore for FY24, much higher than the last year's loss of ₹19.91 crore.
