Ampere Scooter Maker Greaves Electric Gets Closer to INR 1,000 Cr IPO, Files DRHP

Greaves Electric

Three points you will get to know in this article:

  • Greaves Electric’s IPO will include a fresh offering of shares worth INR 100 crores and an OFS component of up to 18.93 crore shares.
  • As part of the OFS, proprietor Greaves Cotton would sell 5.1 crore shares, while Abdul Latif Jameel Green Mobility Solutions will sell 13.83 crore shares.
  • Greaves Electric distributes electric scooters under the brand name “Ampere” and manufactures three-wheelers under other brands.

EV Startup Greaves Electric Mobility Files DRHP For INR 1,000 Cr IPO

Greaves logo

Greaves Electric Mobility (GEML), an EV maker, submitted its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on Monday (December 23), kicking off its public listing preparations.

Greaves Electric sells electric scooters under the brand “Ampere”. It also makes three-wheelers under several labels. In 2019, it completed the acquisition of Ampere Vehicles by purchasing the whole stock of founder Hemalatha Annamalai in a secondary transaction.

In a filing with the markets, parent Greaves Cotton stated that the initial public offering (IPO) will include a new issue of shares worth INR 1,000 crore and an offer for sale (OFS) component of up to 18.93 crore shares.

As part of the OFS, proprietor Greaves Cotton would sell 5.1 crore shares, while Abdul Latif Jameel Green Mobility Solutions will sell 13.83 crore shares. The stock will be listed on the BSE and NSE.

Ampere Scooter IPO Details, Greave Electric Mobility IPO Size, Details

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.

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