Greaves Electric Gets SEBI’s Approval For IPO

Greaves Electric Mobility has received the approval from the Securities and Exchange Board of India (SEBI) for its Initial Public Offering. The automotive arm of Greaves Cotton Ltd. which retails electric scooters under the brand name, ‘Ampere’, plans to raise ₹1,000 crore from its IPO through a fresh issue of shares. This makes it the third electric two-wheeler company based out of Bengaluru to go public after Ola Electric and Ather Energy. 

The proposed IPO will comprise 51 million shares of Greaves Cotton Ltd and up to 138.4 million shares from investor Abdul Latif Jameel Green Mobility Solutions DMCC. Along with that, its promoters and investors are also eyeing to sell up to 18.94 crore shares. 

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From the public money raised, Greaves intends to use ₹375 crore for product research and development. Around ₹83 crore will go into developing in-house batteries, while the rest will be used to expand its manufacturing capacity. Reports suggest that Greaves Electric is planning to more than double its manufacturing capacity of three-wheelers across its factories in Telangana and Uttar Pradesh. 

(Also Read: After Ather Energy, Simple Energy Now Plans For IPO By 2027)

Greaves Electric will also use ₹74 crore from the funds raised to increase its stake in subsidiary MLR Auto Ltd, of which the company owns 51 per cent stake already. It plans to fully acquire by exercising a call option. MLR Auto Ltd helped Greaves Electric to enter the L5-three-wheeler segment. The brand's focus to advance its three-wheeler production is a calculated strategy, wherein the marque registered its sale volume double in FY 24, while sales volume of its electric two-wheeler halved in FY 25 to 47,820 units from 1,09,000 units in FY 24. 

(Also Read: Ampere Reo 80 Electric Scooter Launched)

While the IPO might help Greaves Electric with more investments, Ampere electric scooters are still lacking in terms of sales and are not as familiar or popular as its competitors which include the likes of Ather Energy, Bajaj Auto, TVS Motor Company, etc. While it has a presence in around 27 states with approximately 309 electric two-wheelers  — Greaves Electric still has a long way to go to make its scooter a mass product.