With ₹10 billion IPO approved, EV production ramp-up planned, battery assembly line coming, complete MLR Auto acquisition ahead—Greaves Electric charges into the market despite recent losses.
The Securities and Exchange Board of India (SEBI) has approved the initial public offering (IPO) of Greaves Electric Mobility, the electric vehicle arm of Greaves Cotton Ltd. The IPO will make it the third electric two-wheeler firm in India to go public, following Ola Electric and Ather Energy.
Greaves Electric, headquartered in Bengaluru, manufactures electric two-wheelers under the Ampere brand and three-wheelers—electric and internal combustion engine (ICE)—under the Ele, Greaves, and Electra brands.
The company had filed its draft red herring prospectus (DRHP) in December 2024. It plans to raise ₹10 billion via a fresh issue of equity shares. In addition, up to 189.4 million shares will be offered for sale by existing shareholders.
These include up to 51 million shares from promoter Greaves Cotton and 138.4 million shares from investor Abdul Latif Jameel Green Mobility Solutions DMCC.
Currently, Greaves Cotton owns 62.5 per cent of the company, while Abdul Latif Jameel Green Mobility holds the remaining stake.
The fresh funds raised will be used for product research and development (R&D), building battery pack assembly capabilities, and expanding manufacturing operations. Approximately ₹3.75 billion will be allocated to technology development at the Bengaluru R&D centre, and ₹83 crore will set up a battery assembly line at the Ranipet plant by FY27.
Greaves Electric operates three plants—Ranipet (Tamil Nadu), Greater Noida (Uttar Pradesh), and Toopran (Telangana). It plans to more than double its three-wheeler manufacturing capacity at the Toopran and Greater Noida units by FY27.
Additionally, ₹740 million will be used to acquire full ownership of MLR Auto, which currently operates the Toopran facility. Greaves Electric already holds a 51% stake.
The company’s FY24 revenue declined 45.5% to almost ₹6.11 billion, driven by a sharp fall in electric two-wheeler sales. Though three-wheeler volumes doubled, the company reported a widened net loss of ₹6.8 billion, impacted by a one-time loss of ₹4.77 billion related to the FAME 2 subsidy settlement.
