INDIA: Greaves Electric Mobility Limited, an EV manufacturer known for its Ampere, Eltra and Ele brands and offering a complete suite of vehicles across electric two-wheeler (E-2W) and three-wheeler (3W) segments catering to both B2C and B2B customers for personal and commercial purposes, has filed the draft red herring prospectus (DRHP) with capital markets regulator, SEBI to raise funds through an initial public offering (IPO).
According to the draft red herring prospectus, the Initial Public Offering of the company consists of a Fresh Issue of equity shares aggregating up to Rs. 1000 crores and an Offer for Sale of up to 18,93,98,200 Equity Shares (18.9 crore shares) by the Selling Shareholders. Under the offer for sale component, Greaves Cotton Limited, the Promoter Selling Shareholder will divest 5.1 crore equity shares, and Abdul Latif Jameel Green Mobility Solutions DMCC, the Investor Selling Shareholder will divest 138,398,200 Equity Shares (13.8 crore shares).
The company, in consultation with the BRLMs, may consider a pre-IPO placement aggregating up to Rs. 200 crores before filing the Red Herring Prospectus. If the pre-IPO placement is completed, the fresh issue will be reduced to the extent of such pre-IPO placement.
Greaves Electric Mobility Limited (GEML) which was established in 2008 proposes to utilize the Net Proceeds of the Fresh Issue towards investment for product & technology development and enhancing capabilities at its Technology Centre in Bengaluru (Rs. 375.2 crores); development of in-house battery assembly capabilities (Rs. 82.9 crores); funding the expansion of the manufacturing capacity of Bestway Agencies Private Limited (wholly owned Material Subsidiary) (Rs. 19.8 crores); expansion of the financing of the manufacturing capacity of MLR Auto Limited (a Material Subsidiary) (Rs. 38.2 crores); increasing company’s stake in MLR through acquisitions (Rs. 73.6 crores); increase digitization and deployment of information technology infrastructure (Rs. 27.8 crores); funding inorganic growth through unidentified acquisitions and general corporate purposes.
GEML’s vehicle portfolio caters to a diverse customer base, with its offerings spanning E-2W across all three segments – High-Speed e-scooters, City Speed e-scooters, and Low-Speed e-scooters, with models for B2C and B2B use cases, and 3Ws which includes products across the entire spectrum of 3W mobility, which provides for electric three-wheelers, internal combustion engine three-wheelers (diesel or CNG) and e-rickshaws, with models for cargo and passenger use cases.
As of September 30, 2024, GEML operated three manufacturing facilities in strategic locations in Ranipet (Tamil Nadu), Greater Noida (Uttar Pradesh) and Toopran (Telangana). The company’s revenue from operations as of Fiscal 2024 was Rs. 611.8 crores and Rs. 302.2 crores for the six months ended September 30, 2024.
Motilal Oswal Investment Advisors Limited, IIFL Capital Services Limited, and JM Financial Limited are the book-running lead managers to the issue.
