Greaves Cotton shares jump nearly 8% as firm Greaves Electric files draft paper for IPO
New Delhi: Shares of Greaves Cotton went up nearly 8 per cent on Tuesday after electric vehicle (EV) maker Greaves Electric Mobility Ltd filed draft papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO).
The stock soared 7.90 per cent to settle at Rs 247.30 on the BSE. During the day, it zoomed 15.18 per cent to hit its one-year high of Rs 264.
At the NSE, it jumped 7.36 per cent to Rs 246.23.
The IPO is a combination of a fresh issue of equity shares worth Rs 1,000 crore and an offer for sale (OFS) of 18.9 crore shares by the selling shareholders, according to the draft papers filed on Monday.
Under the OFS, promoter Greaves Cotton will divest 5.1 crore equity shares and an investor Abdul Latif Jameel Green Mobility Solutions DMCC will offload 13.8 crore shares.
Greaves Electric is recognised for its ‘Ampere’ brand of electric scooters and also produces three-wheelers under a separate brand name.
The company may consider raising Rs 200 crore through a pre-IPO placement. If such placement is undertaken, the fresh issue will be reduced.
Proceeds from the fresh issue will be utilised for various strategic initiatives, including Rs 375.2 crore for product and technology development at the Bengaluru Technology Centre, Rs 82.9 crore for developing in-house battery assembly capabilities, and Rs 19.8 crore for expanding the manufacturing capacity of Bestway Agencies Pvt Ltd.
Additionally, Rs 38.2 crore will be allocated to expand MLR Auto Ltd’s manufacturing capacity, Rs 73.6 crore to increase the company’s stake in MLR through acquisitions, Rs 27.8 crore to enhance digitisation and IT infrastructure, and funds will also used to support inorganic growth through acquisitions and general corporate purposes.
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