Stock Report

Greaves completes growth capital infusion with Abdul Latif Jameel

Posted On : 2022-06-23 22:47:11( TIMEZONE : IST )

Greaves completes growth capital infusion with Abdul Latif Jameel

Greaves Electric Mobility Private Limited (the "Company"), a subsidiary of Greaves Cotton Limited, announces the completion of allotment of equity shares to Abdul Latif Jameel, an independent, family-owned, diversified global investor and operator following the announcement made in early June.

The Company has allotted 68,35,450 (Sixty Eight Lakh Thirty Five Thousand Four Hundred and Fifty) equity shares of face value INR 10 each representing 35.80% shareholding in the Company on a fully diluted basis, to Abdul Latif Jameel, by way of preferential allotment through private placement basis for a share subscription consideration of INR 1,171 Crores (USD 150 million).

Following the allotment, the Company continues to be a subsidiary of Greaves Cotton Limited and the resultant shareholding of Greaves Cotton Limited in the Company on a fully diluted basis is now 61.38%.

Greaves Electric Mobility manufactures electric two-wheelers under the brand name of Ampere Vehicles and three-wheeler vehicles (E-Auto and E-Rickshaw) under the brands Ele and Teja. Greaves Electric Mobility has grown from a small revenue base to more than US$ 100 million annual revenue run rate. Over the last few years, the Company focused on expanding its product offerings through acquisitions and now it caters to the E2W / E3W ecosystem in India. Greaves Electric Mobility has a strong track record of identifying EV opportunities early and scaling up business operations.

The proceeds from this investment will be used to inter alia develop new products, associated technologies, brand awareness, aiming to transform the Company into a leading global EV manufacturer. The investment aims to support Greaves Electric Mobility as it transitions into the next phase of growth. This strategic investment marks a major milestone in the development of the E2W / E3W ecosystem in India, currently the world's fourth-largest automotive market where the share of EVs in the two-wheeler and three-wheeler segments is expected to increase significantly. These segments are less dependent on commercial charging infrastructure, unlike passenger cars.

By offering cleaner mobility options, Greaves Electric Mobility and Abdul Latif Jameel will assist India in achieving its objective of reducing carbon emissions. This is in line with their shared vision of striving to provide clean, affordable and safe mobility solutions.

Shares of Greaves Cotton Limited was last trading in BSE at Rs. 143.55 as compared to the previous close of Rs. 134.25. The total number of shares traded during the day was 95967 in over 1896 trades.

The stock hit an intraday high of Rs. 145.00 and intraday low of 135.60. The net turnover during the day was Rs. 13477913.00.

Source : Equity Bulls


GreavesCotton INE224A01026 GreavesElectricMobility FundRaising AbdulLatifJameel