Greaves Electric Mobility, a division of Greaves Cotton Ltd., has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The company intends to raise up to Rs 1,000 crore through a fresh issue of shares, with existing shareholders planning to sell up to 18.94 crore equity shares.
Manufacturing and Expansion Plans
Greaves Electric operates three manufacturing facilities across India:
- Ranipet, Tamil Nadu: Focused on electric two-wheelers under the Ampere brand, with an annual production capacity of 4.80 lakh units.
- Greater Noida, Uttar Pradesh: Produces electric three-wheelers with plans to expand capacity from 21,514 to 45,896 units annually. This expansion involves an investment of Rs 20 crore.
- Toopran, Telangana: Manufactures electric and internal combustion engine (ICE) three-wheelers. Its capacity will be increased from 13,538 to 34,800 units annually through an investment of Rs 38 crore.
The expansion projects in Greater Noida and Toopran will be funded using proceeds from the IPO. The company does not plan to increase the production capacity of its two-wheeler plant in Ranipet but will establish a battery pack assembly line at the site. The assembly line, with an annual capacity of 400,000 units, is scheduled to begin commercial production in July 2026.
Sales and Market Presence
In the financial year 2023-24, Greaves Electric sold 47,820 electric two-wheelers, a decline from 1.09 lakh units in the previous year. However, its electric three-wheeler sales doubled to 13,470 units during the same period. The electric two-wheeler segment contributed approximately 68% of the company’s revenue, while the three-wheeler segment accounted for 28%.
Greaves Electric’s portfolio includes high-speed, city-speed, and low-speed electric scooters, as well as electric and ICE three-wheelers for passenger and cargo applications. These are marketed under the Ampere, Ele, Greaves, and Eltra brands. The company currently has 309 electric two-wheeler dealers and 188 three-wheeler dealers across 27 states.
Financial Performance
The company reported revenue of Rs 302.2 crore for the quarter ending September 2024, with a net loss of Rs 107 crore. For the financial year 2023-24, revenue declined by 45.5% to Rs 611.82 crore, and net losses widened to Rs 215 crore, compared to the previous fiscal year. The decline was attributed to a significant drop in electric two-wheeler sales.
Shareholding and IPO Details
Promoter Greaves Cotton plans to reduce its stake by approximately 8.5%, while Abdul Latif Jameel Green Mobility Solutions DMCC intends to sell 39.54% of its holding. Currently, Greaves Cotton holds a 62.5% stake in the company, and Abdul Latif Jameel owns 34.4%. The price band and lot size for the IPO will be finalized through a book-building process managed by Motilal Oswal, IIFL Capital, and JM Financial.
Future Outlook
The company’s planned expansions and investments aim to meet growing demand in the electric three-wheeler market while maintaining its position in the two-wheeler segment. The addition of in-house battery assembly capabilities is expected to enhance its manufacturing ecosystem.