By an IPO, Greaves is expected to raise ₹1,000 crore.
The Securities and Exchange Board of India (SEBI) has given Greaves Electric Mobility Ltd (GEML) regulatory clearance to move forward with its initial public offering (IPO), which is a major step forward for the electric vehicle (EV) sector in India.
The company, which functions as a subsidiary of Greaves Cotton Ltd, is aiming to raise ₹1,000 crore through a mix of fresh equity issuance and an offer for sale by current shareholders.
This marks a major milestone for GEML as it seeks to expand operations, improve production capacity, and strengthen its position in the increasingly competitive Indian EV market.
Details of the IPO Structure
As per the company’s filings, the IPO will include a fresh issue of shares totaling ₹1,000 crore. Additionally, current owners want to use an Offer for Sale (OFS) to sell up to 18.9 crore equity shares. Among the major selling shareholders, Greaves Cotton, the parent company, will offload around 5.1 crore shares. Another significant shareholder, Abdul Latif Jameel Green Mobility Solutions DMCC, will offer approximately 13.8 crore shares for sale.
GEML has also indicated the option of conducting a pre-IPO placement of up to ₹200 crore. If this placement takes place, the fresh issue size will be adjusted accordingly.
Purpose of the Fundraising
The capital raised from the fresh issue is expected to be used for several growth-driven initiatives. GEML plans to invest ₹375 crore in research and development to support the creation of new products and advanced technologies in the EV space. This move aligns with the company’s strategy to remain at the forefront of innovation in electric mobility.
Another ₹83 crore will be dedicated to setting up an in-house battery assembly unit. This facility is expected to reduce reliance on third-party suppliers, streamline production, and improve control over the quality of critical EV components.
Additionally, the company plans to use around ₹20 crore to increase manufacturing capabilities at Bestway Agencies Pvt Ltd, a group company involved in vehicle assembly and production. The remaining funds will be allocated toward general corporate needs, branding, and operational enhancements.
Company Background and Market Position
Greaves Electric Mobility has emerged as a significant player in India’s electric vehicle segment, particularly in the two-wheeler and three-wheeler categories. The company operates under well-known EV brands such as Ampere, Ele, and ELTRA, which cater to a wide range of consumer and commercial users across urban and rural regions.
The firm currently operates three manufacturing plants and maintains an expansive distribution and service network throughout the country. Its vehicles are known for being affordable, reliable, and suitable for Indian road conditions, making them popular among delivery services, commuters, and small business owners.
Financial Performance and Growth
In terms of financial metrics, Greaves Electric Mobility posted a revenue of ₹611.8 crore for the fiscal year ending March 2024. For the six months ending September 2024, it generated ₹302.2 crore in revenue, indicating continued growth and a steady demand for its products.
These strong financials reflect the company’s strategic focus on high-demand segments and its ability to offer cost-effective EV solutions to mass-market consumers. With increased awareness around environmental issues and fuel costs, more Indian consumers are making the switch to electric vehicles, further strengthening GEML’s market opportunity.
Industry Impact and Outlook
The IPO approval comes at a time when India’s EV industry is experiencing robust growth due to government incentives, technological advancements, and rising fuel prices. By going public, GEML aims to capitalize on this momentum, attract new investors, and accelerate its long-term growth plans.
The capital raised will enable GEML to scale faster, enhance its product offerings, and compete more effectively with both traditional automakers and newer EV startups. The move is also expected to set a benchmark for other EV companies considering public listings in India.
Investors will be closely watching this IPO, as it represents not only a corporate milestone for GEML but also a key moment in India’s transition to sustainable mobility.
Conclusion
With SEBI’s approval in hand, Greaves Electric Mobility is all set to launch its IPO and raise funds to support its next phase of expansion. The move will likely fuel innovation, strengthen in-house capabilities, and reinforce the company’s role as a leader in India’s evolving EV landscape. As the country shifts toward greener transportation solutions, GEML’s IPO could be a major turning point—not just for the company, but for the broader industry.
The image added is for representation purposes only
