Electric vehicle manufacturer Greaves Electric Mobility has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise ₹1,000 crore through an initial public offering (IPO).
The IPO consists of a new share issuance to raise new capital, as well as an offer for sale (OFS) of up to 189.4 million shares by the company's promoters and major investors. The OFS consists of 51 million shares from its parent business, Greaves Cotton Ltd., and 138.4 million shares from Abdul Latif Jameel Green Mobility Solutions DMCC, a Dubai-based investor.
Greaves Electric, a subsidiary of Greaves Cotton Ltd, manufactures two-wheelers under the Ampere brand and three-wheelers under brands like Ele, competing with industry leaders such as Ola Electric, Ather Energy, TVS Motor, Bajaj Auto, and Hero MotoCorp.
Equity shares with a face value of ₹1 apiece will be listed on the NSE and BSE. Proceeds from the new issue are targeted for:
· Expanding product research and development (R&D).
· Establishing in-house battery assembly capabilities.
· Increasing manufacturing capacity to meet growing demand.
Currently, Greaves Cotton Ltd holds a 62.5% stake in Greaves Electric, with Abdul Latif Jameel Green Mobility owning the remainder.
Greaves Electric's IPO joins other high-profile EV makers entering India's public markets, like Ather Energy. The Indian IPO market has grown significantly, with proceeds exceeding $17.5 billion by mid-December, doubling year on year, according to LSEG data.
Greaves Electric aims to replicate the success of Ola Electric Mobility, which recently debuted as the first pure-play Indian EV company on the bourses, garnering bids for 4.3 times the shares on offer.
As the shift toward sustainable mobility gains momentum in India, Greaves Electric’s IPO reflects its ambition to solidify its market position and capitalise on the rapidly expanding electric vehicle ecosystem.
