Greaves Electric Mobility IPO: ₹1,000 Crore Listing Set to Electrify the Market
The electric vehicle (EV) market in India is buzzing with excitement as Greaves Electric Mobility Limited (GEML), a subsidiary of Greaves Cotton, gears up for its much-anticipated ₹1,000 crore IPO. Known for its popular EV brands like Ampere, Eltra, and Ele, GEML is set to make a significant mark in the EV space with this public offering.
Adding to the excitement, ace investor Vijay Kedia recently acquired a 0.52% stake in Greaves Cotton, further boosting investor confidence in the company’s growth potential. Here’s everything you need to know about the upcoming IPO and what it means for the EV market.
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Greaves Electric Mobility IPO: Key Details
1. IPO Structure
The IPO will include:
- Fresh Issue: Equity shares worth ₹1,000 crore.
- Offer for Sale (OFS): Up to 18.93 crore equity shares by existing shareholders, including:
- Greaves Cotton Limited: Selling up to 5.1 crore shares.
- Abdul Latif Jameel Green Mobility Solutions DMCC: Selling up to 13.83 crore shares.
2. Pre-IPO Placement
GEML may consider a pre-IPO placement of up to ₹200 crore, which could reduce the size of the fresh issue. This placement, if undertaken, will not exceed 20% of the fresh issue size, as per the company’s Draft Red Herring Prospectus (DRHP).
Vijay Kedia’s Investment: A Vote of Confidence
Renowned investor Vijay Kedia recently purchased 12 lakh shares of Greaves Cotton for ₹25 crore via a block deal on December 9, 2024. The average buying price was ₹208.9 per share.
This strategic move came shortly after Greaves Cotton approved the IPO for its EV subsidiary, GEML. Kedia’s investment has been seen as a strong endorsement of the company’s growth potential, further fueling market enthusiasm.
Greaves Cotton’s Stake in GEML
As per the DRHP:
- Greaves Cotton holds a 62.48% stake in GEML.
- Abdul Latif Jameel Green Mobility Solutions DMCC owns 36.44%.
The IPO will allow both entities to partially offload their stakes while raising funds to fuel GEML’s growth and expansion plans.
The announcement of the IPO and Vijay Kedia’s investment have had a significant impact on Greaves Cotton’s share price:
- On December 27, the stock skyrocketed 20% to hit an all-time high of ₹281.85 on the BSE, before closing at ₹281.35 with 19.77% gains.
- The stock has rallied over 113% in the past six months, with a massive 82% jump since its November low of ₹154.5.
This surge reflects strong investor confidence in the company’s EV arm and its potential to capitalize on the booming EV market.
GEML’s EV Portfolio and Market Position
GEML is a key player in India’s EV market, offering a range of electric two-wheelers and three-wheelers under its brands Ampere, Eltra, and Ele.
Why GEML Stands Out:
- Diverse Product Range: GEML caters to both personal and commercial EV segments, making it a versatile player in the market.
- Strong Backing: With Greaves Cotton’s legacy and Abdul Latif Jameel’s global expertise, GEML is well-positioned to scale its operations.
- Growing EV Demand: India’s EV market is expected to grow exponentially, driven by government incentives, rising fuel prices, and increasing consumer awareness.
What the IPO Means for the EV Market
The ₹1,000 crore IPO is expected to:
- Boost GEML’s Expansion Plans: The funds raised will likely be used to scale production, enhance R&D, and expand the company’s sales and service network.
- Strengthen Investor Confidence: With Vijay Kedia’s backing and a strong market position, GEML is poised to attract significant investor interest.
- Accelerate EV Adoption: As GEML grows, it will contribute to the broader adoption of electric vehicles in India, supporting the country’s transition to sustainable mobility.
A Milestone for Greaves Electric Mobility
The upcoming Greaves Electric Mobility IPO is a significant milestone for both the company and India’s EV industry. With a strong product portfolio, strategic investments, and a booming market, GEML is well-positioned to capitalize on the growing demand for electric vehicles.
As the IPO approaches, all eyes will be on GEML’s performance and its impact on the EV market. For investors, this could be a golden opportunity to ride the wave of India’s electric mobility revolution.
