Greaves Electric Mobility IPO Approved by Sebi

New Delhi, May 13 (PTI) Electric vehicle maker Greaves Electric Mobility Ltd has received Sebi's go-ahead to raise funds through an initial public offering (IPO), an update with the markets regulator showed on Tuesday.

The proposed IPO is a combination of a fresh issue of equity shares worth Rs 1,000 crore and an Offer for Sale (OFS) of 18.9 crore shares by the selling shareholders, according to the draft papers filed in December.

Under the OFS, promoter Greaves Cotton will divest 5.1 crore equity shares and investor Abdul Latif Jameel Green Mobility Solutions DMCC will offload 13.8 crore shares.

As per the update, the company, which filed its preliminary IPO papers with Sebi in December 2024, obtained the regulator's observations on May 8.

In Sebi's parlance, obtaining its approval means its go-ahead to launch the public issue.

Greaves Electric is recognised for its 'Ampere' brand of electric scooters and also produces three-wheelers under a separate brand name.


Proceeds from the fresh issue will be utilised for various strategic initiatives, including Rs 375.2 crore for product and technology development at the Bengaluru Technology Centre, Rs 82.9 crore for developing in-house battery assembly capabilities, and Rs 19.8 crore for expanding the manufacturing capacity of Bestway Agencies Private Limited.

Additionally, Rs 38.2 crore will be allocated to expand MLR Auto Limited's manufacturing capacity, Rs 73.6 crore to increase the company's stake in MLR through acquisitions, Rs 27.8 crore to enhance digitisation and IT infrastructure, and funds will also be used to support inorganic growth through acquisitions and general corporate purposes.

Greaves Electric Mobility offers a complete suite of vehicles across the electric two-wheeler (E-2W) and three-wheeler (3W) segments, catering to both B2C and B2B customers for personal and commercial purposes.

As of September 30, 2024, GEML operated three manufacturing facilities in strategic locations in Ranipet (Tamil Nadu), Greater Noida (Uttar Pradesh) and Toopran (Telangana).

On the financial front, the company's revenue from operations as of fiscal 2024 was Rs 611.8 crore and Rs 302.2 crore for the six months ended September 30, 2024.

Meanwhile, Meir Commodities India Ltd withdrew its draft IPO documents on May 2. The preliminary documents were received by Sebi in March, the update showed.

The Mumbai-based company's proposed IPO comprised a mix of fresh issues of 52.94 lakh shares and an offer-for-sale (OFS) of 35.29 lakh shares by the promoter.