Greaves Cotton to Invest ₹331 Crore in Greaves Electric Mobility Rights Issue

Greaves Cotton on Friday approved an investment of up to ₹331 crore in the proposed rights issue of its material subsidiary, Greaves Electric Mobility Limited (GEML), in a bid to strengthen its presence in India's fast-growing electric mobility market.

The company's board has approved subscribing in full to its entitlement in the proposed rights issue, subject to the successful completion of the transaction.

According to Greaves Cotton, the proposed capital infusion is aimed to support Greaves Electric Mobility as it continues to expand its operations and product portfolio in the country's electric vehicle segment. 

The company added that the investment is in line with its long-term strategy of backing future-focused businesses and reflects its continued confidence in the subsidiary's growth prospects.

"Our proposed investment in Greaves Electric Mobility Limited reflects our conviction in the long-term opportunity presented by India's transition to sustainable mobility. Backed by a strong balance sheet, healthy cash position and our disciplined capital allocation approach, we continue our focus on the broader Greaves.Next growth journey," Parag Satpute, Managing Director and Group CEO, Greaves Cotton, said in a statement.

Greaves Electric Mobility is the group's dedicated electric vehicle (EV) business, offering a range of electric two-wheelers and three-wheelers for both passenger and cargo applications. 

The company is also preparing for an initial public offering (IPO) after filing a draft red herring prospectus with the Securities and Exchange Board of India (SEBI).