Greaves Electricity Mobility IPO: SEBI Filing Reveals Rs 1,000 Crore Fresh Issue Plan

Greaves Electricity Mobility Ltd. on Monday filed its preliminary papers with the capital markets regulator SEBI to raise up to Rs 1,000 crore via an initial public offering. The public offer will include an offer for the sale of up to 18.9 crore shares and a fresh issue of shares worth Rs 1,000 crore, according to the draft red herring prospectus.

The equity shares are proposed to be listed on the National Stock Exchange of India Ltd. and BSE Ltd.

Greaves Cotton Ltd. is the only promoter of the company offloading shares in the offer for sale, 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 may consider raising Rs 200 crore as pre-IPO placement. If such placement is completed, the fresh issue size will be reduced.

The electric vehicle making company plans to use Rs 375.27 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 82.9 crore will be allocated towards developing in-house battery assembly capabilities. The company will allot Rs 19.89 crore and Rs 38.26 crore for the expansion of manufacturing capacity at Bestway Agencies Pvt. Ltd. and MLR Auto Ltd., respectively.

The company intends to use Rs 73.67 crore to increase its stake in MLR Auto through an acquisition. Furthermore, Rs 27.8 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. The company is also a leading manufacturer of fuel-agnostic powertrains for diesel, compressed natural gas, petrol, and electric vehicles, catering to both automotive and non-automotive applications.

The company's revenue from operations in the financial year 2024 stood at Rs 611.81 crore, in comparison to Rs 1,121.57 crore reported in the previous fiscal. Loss in fiscal 2024 stood at Rs 691.57 crore.

In the first six months of this fiscal, revenue from operations stood at Rs 302.23 crore while the loss was at Rs 106.15 crore.