Greaves Electric Mobility Raises ₹530 Crore Through Rights Issue, Cancels Planned IPO

Greaves Electric Mobility Ltd, (GEML), which operates the Ampere, Ele, and Greaves brands of electric bikes, rickshaws and three-wheelers respectively, announced on Friday that it will not be going ahead with a previously planned IPO, and instead would be raising funds through a rights issue. The company has now confirmed that the rights issue has been fully subscribed by existing shareholders, resulting in a ₹530 crore infusion of fresh funding.

Anchor shareholders including parent company Greaves Cotton Limited (GCL) and Abdul Latif Jameel Green Mobility Solutions (ALJ), have purchased new rights in proportion to their existing holdings, leaving the company’s ownership structure unchanged. GCL continues to hold 62.48 percent of GEML, after exercising its full entitlement of approximately ₹331.12 crore.

The board of GEML approved the allotment of equity shares to all eligible shareholders in accordance with their rights entitlement, on August 2. In an official filing with the Bombay Stock Exchange and National Stock Exchange, the company stated that this reflects the long-term commitment and confidence of the current stakeholders.

The new funding is to be used for GEML’s next phase of growth. In particular, it will go towards research and development of future products, particularly battery management systems, powertrains, and other technology. The company also said the money will support execution. The company has recently expanded its retail and service touchpoint network to boost its own competitiveness, amid the rapid adoption of electric bikes and three-wheelers.

In a press statement, Greaves Cotton Ltd Chairman Karan Thapar said “GCL’s strong balance sheet enables us to support organic growth and selectively invest behind businesses with clear long-term potential. Our continued investment in Greaves Electric Mobility reflects our confidence in its strategic direction, execution capabilities and role in advancing India’s clean mobility transition. With its manufacturing footprint, engineering depth, expanding portfolio and focus on Building for Bharat, GEML is well placed to sustain its market-outperforming growth and create enduring value.”

GEML reported turnover of ₹596.98 crore and a net worth of ₹117.75 crore as of March 31, 2026, up from ₹444.31 crore in FY 2024-25 and ₹433.84 crore in FY 2023-24.

On July 31, GEML submitted a letter to the BSE and NSE, stating that it was not proceeding with previously filed plans to launch an IPO. The company’s draft red herring prospectus, dated December 23, 2024, was approved by both exchanges in principle on February 17, 2025, with final observations from SEBI received on May 8, 2025. This gave the company a one-year window in which to launch its IPO. That period lapsed earlier this year, but the company qualified for a one-time extension as per SEBI regulations. With the lapsing of the final observations, the company has confirmed that it does not intend to take advantage of the extension period, thus formally shutting down the IPO process.