A draft red herring prospectus (DRHP) for Greaves Electric Mobility’s first public offering (IPO) has been submitted. In order to raise Rs 1,000 crore (Rs 10 billion) through a new share offering, the business plans to sell up to 189.4 million shares to its investors and promoter.
headquartered in Bengaluru Greaves Electric is the electric mobility subsidiary of Greaves Cotton Ltd. It manufactures and sells two-wheelers under the Ampere brand and three-wheelers under the Ele and other names. Big players like Hero MotoCorp, TVS Motor, Bajaj Auto, Ather Energy, and Ola Electric are competitors of the company.
According to the DRHP that was submitted to the market regulator SEBI, the business will issue equity shares with a face value of Rs 1 and list them on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
Up to 51 million shares from parent company Greaves Cotton Ltd. and up to 138.4 million shares from investor Abdul Latif Jameel Green Mobility Solutions DMCC are included in the offer of sales component.
At the moment, Abdul Latif Jameel Green Mobility owns the remaining interest in Greaves Electric, while Greaves Cotton owns 62.5% of the company. In order to fulfill the increasing demand for electric vehicles, Greaves Electric intends to increase manufacturing capacity, expand in-house battery assembly capabilities, and conduct product research and development using the net proceeds of the new issuance. In order to support sustainable transportation options in India, the company wants to improve technology, increase production, and solidify its position in the EV market.
