A electric mobility company is preparing for an IPO, aiming to raise ₹1000 crore through new shares and offering 189,398,200 existing shares for sale. This move focuses on unlocking value and showcasing the company’s growth potential in the expanding electric vehicle market.
Share Price Movement
The share price of Greaves Cotton Limited went up by 7.7 percent to Rs. 247 per share on Tuesday, an increase from its previous close of Rs. 229.34 per share. The market capitalisation now stands at approximately Rs. 5,737 crore as of December 24, 2024.
What happened
Greaves Electric Mobility Limited (GEML), a subsidiary of Greaves Cotton Limited, has filed for an IPO with plans to raise ₹1000 crore through new shares and sell 189,398,200 existing shares. The IPO depends on regulatory approvals and market conditions.
Q2 Financial Highlights
According to its recent filing, in the quarter ending September 2024, Greaves Cotton’s consolidated revenue from operations has decreased by 3.2 percent YOY from Rs. 727 crore in Q2 FY24 to Rs. 705 crore in Q2 FY25 and increased by 10 percent QoQ from Rs. 640 crore in Q4 FY24.
The company’s consolidated net loss has reduced from a loss of Rs. 375 crore in Q2 FY24 to a loss of Rs. 14 crore in Q2 FY25.
Market Outlook
The electric three-wheelers (L5-3W) industry grew strongly in FY 2023-24, thanks to new BS6 emission rules and better rural infrastructure. Demand for affordable transportation led to a 41% rise in three-wheeler sales, reaching record-high numbers. CNG is the most popular fuel, used in 63% of vehicles, followed by diesel and electric options. E-commerce also increased demand for cargo vehicles. In the future, costs and government policies will play a key role in shaping the market for these vehicles.
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Shareholding Pattern
As of September 2024 shareholding pattern, Greaves Cotton Limited is primarily held by the promoters at 55.88 percent, foreign institutional investors hold 1.04 percent, and the public with 39.23 percent.
About Company
Greaves Cotton Limited, a leading engineering company in India, has been driving innovation since its inception on March 29, 1922. Headquartered in Mumbai, the company rebranded from Greaves Limited in 2003, reflecting its expanded focus. With a diverse product portfolio, including engines, gensets, electric vehicles, and farm equipment, it has established a strong presence across Southeast Asia, Africa, the Middle East, and Europe.
The company operates through key business segments, including fuel-agnostic powertrain solutions, e-mobility, aftermarket services, and auxiliary power. Strategic initiatives like acquiring a majority stake in Ampere Vehicles and launching Greaves Care outlets have strengthened its market position.
Greaves Cotton remains committed to sustainability and innovation, aiming to redefine green mobility and touch a billion lives by 2030. Its enduring legacy and forward-looking strategies ensure it remains a leader in engineering excellence.
Written By Fazal Ul Vahab C H
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