Greaves Cotton-promoted Greaves Electricity Mobility Ltd. received the capital markets regulator's nod for its initial public offering.
The company had filed draft papers in December 2024, looking to raise up to Rs 1,000 crore via a fresh issue. The public offer would also include an offer for the sale of up to 18.9 crore shares.
Greaves Cotton Ltd. is the only promoter of the company offloading shares in the OFS, while Abdul Latif Jameel Green Mobility Solutions DMCC is an investor that will be selling stake in the issue.
Motilal Oswal Investment Advisors Ltd., IIFL Capital Services Ltd. and JM Financial Ltd. are the book-running lead managers for the issue, and Link Intime India Pvt. will be the registrar of the issue.
The Vellore-based company, in its DRHP, had also said that it may consider raising Rs 200 crore from a pre-IPO placement. If such placement is completed, the fresh issue size will be reduced.
The electric vehicle making company plans to use Rs 375 crore of the net proceeds from the fresh issue to invest in product and technology development, as well as to enhance the capabilities of its technology centre in Bengaluru.
Additionally, Rs 83 crore will be allocated towards developing in-house battery assembly capabilities. As per the draft papers, the company will allot Rs 20 crore and Rs 38 crore for the expansion of manufacturing capacity at Bestway Agencies Pvt. and MLR Auto, respectively.
The company intends to use Rs 74 crore to increase its stake in MLR Auto through an acquisition. Furthermore, Rs 28 crore of the proceeds will be directed towards advancing the company's digitisation efforts and deploying IT infrastructure, and the remaining amount will be used for funding inorganic growth through strategic acquisitions and other general corporate purposes.
The company offers a range of vehicles across electric two-wheeler and three-wheeler segments used for commercial and personal purposes.
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