Meanwhile, an NDTV Profit report indicated that Greave Electric Mobility’s IPO will be worth roughly INR 1,000 crore. The business intends to invest INR 375.27 crore in product and technology development, as well as to improve the technical capabilities at its Bengaluru technology centre.
In addition, the EV producer will put aside INR 82.9 crore to build in-house battery assembly capabilities, while another INR 27.8 crore will be set aside to advance the company’s digitisation initiatives and implement IT infrastructure.
GEML also intends to invest INR 73.67 crore in its subsidiary and electric vehicle manufacturer, MLR Auto. Meanwhile, INR 19.89 crore and INR 38.26 crore have been put aside to increase the manufacturing capacity of its subsidiaries Bestway Agencies (e-rickshaw maker under the ELLE brand) and MLR Auto, respectively.
A portion of the fresh proceeds from the IPO will be used to fund inorganic expansion through strategic acquisitions, as well as general business objectives.
Greaves Electric Mobility is also apparently considering a pre-IPO placement of up to INR 200 crore. According to the article, if the EV producer conducts a pre-IPO placement, the amount of the new issuance may be reduced.
Greaves Electric reportedly lost INR 691.57 crore in fiscal year 2023-24 (FY24), compared to INR 20 crore in the previous year period. Meanwhile, revenue from operations fell to INR 611.81 crore from INR 1,121.57 crore in FY23.
Meanwhile, the company recorded an operational revenue of INR 302.23 crore in the first half (H1) of FY25, with a net loss of INR 106.15 crore.
Greaves Electric’s aspirations to float on the stock exchange come at a time when the company has been navigating turbulent waters for the previous few years. In 2022, the Ministry of Heavy Industries convicted the EV manufacturer of violating localization standards under the disputed Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME)-II plan.
The government then issued a recovery notice of INR 125 crore to the EV maker. The Ampere manufacturer eventually paid the sum last year.