Greaves Electric Mobility

Greaves Electric Mobility, the electric mobility arm of Greaves Cotton Ltd. and the maker of Ampere electric two-wheelers, recently filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO).

The company aims to raise up to Rs 1,000 crore through a fresh issue of shares while existing shareholders plan to sell up to 18.94 crore equity shares.

Offer for sale details  

According to the DRHP, promoter Greaves Cotton will divest part of its holding—amounting to around 8.5%—while investor Abdul Latif Jameel Green Mobility Solutions DMCC will offload nearly 39.54% of its stake.

Currently, Greaves Cotton holds about 62.5% of the company, and Abdul Latif Jameel owns roughly 34.4%. The price band and minimum lot size will be finalized through a book-building process in consultation with Motilal Oswal, IIFL Capital, and JM Financial, the lead managers for the offering.

Financial Performance  

Greaves Electric reported revenue of Rs 302.2 crore from operations in the quarter ending September 2024, with a net loss of Rs 107 crore.

In the previous fiscal year (FY24), revenue declined by about 46%, primarily due to a 60% drop in electric scooter sales. Total losses widened more than tenfold to Rs 215 crore during the same period.

Meanwhile, for the full financial year 2024, the company’s revenue stood at Rs 611.82 crore, down by 45.5% compared with the year-ago period.

Electric two-wheeler sales volume fell from 1.09 lakh units in FY23 to 47,820 units in FY24, while three-wheeler sales doubled from 6,870 to 13,470 units.

Manufacturing and expansion plans  

Greaves Electric operates three key manufacturing facilities:

1. Ranipet, Tamil Nadu – Electric two-wheelers (Ampere brand)

2. Greater Noida, Uttar Pradesh – Electric three-wheelers

3. Toopran, Telangana – Electric and internal combustion engine (ICE) three-wheelers

The company plans to use the proceeds from the fresh issue for product research and development, building in-house battery assembly capabilities, and enhancing its manufacturing capacity.

It currently has a presence in 27 states with 309 electric two-wheeler dealers and 188 three-wheeler dealers.

Greaves Electric faces competition from several established players, including Ola Electric, Ather Energy, TVS Motor, Bajaj Auto, and Hero MotoCorp.

Established in 2008, Greaves Electric Mobility’s vehicle portfolio consists of high-speed e-scooters, city-speed e-scooters and low-speed e-scooters, and products across the entire spectrum of 3W mobility, which includes electric three-wheelers, internal combustion engine three-wheelers (diesel or CNG) and e-rickshaws, with models for cargo and passengers.