EV makers Greaves Electric Mobility has filed DRHP to the SEBI for an IPO worth 1,000 cr and it has a combination of a fresh issue of ₹1,000 crores and an Offer for Sale consisting of up to 18,93,98,200 equity shares (18.9 crore shares) by the selling shareholders.
After having discussion with BRLMs, the company may raise Rs 200 crore from the pre-IPO placement prior to filing DRHP(Draft red herring prospectus).
Additionally, Greaves Electric is known for its ‘Ampere’ brand of e-scooters and also produces three-wheelers under a separate brand name. In this OFS process, Greaves Cotton as promoter plan to sell 5.1 crore equity shares, while Abdul Latif Jameel Green Mobility Solutions DMCC act as investor selling shareholder, will also sell 138,398,200 equity shares (13.8 crore shares).
Motilal Oswal Investment Advisors Ltd, IIFL Capital Services Ltd, and JM Financial Ltd are the book running lead managers of this issue.
Before the issue, Greaves Cotton held a 62.5% ownership in Greaves Electric, while the remaining stake was owned by Abdul Latif Jameel Green Mobility Solutions.
Fund deployment of this IPO
The IPO proceeds will be used for the technology development and enhancement capabilities at its Technology Centre Located In Bangalore(Rs 375.2 crore) and also for building in-house battery assembly capabilities (Rs. 82.9 crore). Moreover, funds also would be utilized for increasing manufacturing capacity at Bestway Agencies Private Ltd (a wholly owned subsidiary) (Rs.19.8 crores) and MLR Auto Ltd (a material subsidiary) (Rs. 38.2 crores), also they have aim to soar MLR through acquisitions (Rs. 73.6 crores), enhancing digitization and IT infrastructure (Rs. 27.8 crores), and supporting growth through other acquisitions and general corporate needs.
Further, Greaves Electric along with Ather Energy is taking part in India’s primary market with proceeds more than doubling year-on-year to $17.5 billion by mid-December, according to data from LSEG.
Greaves Electric Mobility IPO Prospectus:
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | To be Updated Soon |
Greaves Electric Mobility Company Financial Report
Amount ₹ in Crores
| Period Ended | Revenue | Expense | Profit After Tax |
| 2022 | ₹521.37 | ₹560.41 | ₹45.38 |
| 2023 | ₹1156.45 | ₹1169.35 | ₹19.91 |
| 2024 | ₹641.31 | ₹857.26 | ₹691.57 |
| September 2024 | ₹312.75 | ₹420.18 | ₹106.15 |
Greaves Electric Mobility IPO Valuation – FY2024
Greaves Electric Mobility IPO valuations detail like Earning Per Share (EPS), Price/Earning P/E Ratio, Return on Net Worth (RoNW), and Net Asset Value (NAV) details.
| Earning Per Share (EPS): | –₹7.11 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | –165.16% |
| Net Asset Value (NAV): | ₹4.31^ |
Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
| Ola Electric Mobility Limited | (4.35) | NA | (78.46%) | 5.54 | 50,098.31 Cr. |
| Ather Energy Limited | (47.32) | NA | (194.12%) | 24.38 | 17,538.00 Cr. |
| TVS Motor Company Limited | 35.50 | 71.21 | 24.86% | 142.78 | 3,91,447.40 |
| Hero Motorcorp Limited | 187.36 | 24.27 | 21.16% | 885.51 | 3,77,886.20 |
| Bajaj Auto Limited | 272.70 | 33.00 | 26.61% | 1024.51 | 4,48,704.30 |
| Mahindra & Mahindra Limited | 101.14 | 30.63 | 17.02% | 594.08 | 13,82,793.00 |
| Atul Auto Limited | 3.39 | 182.08 | 2.14% | 158.66 | 5,272.90 |
Objects of the Issue
- Investment for (a) product and technology development; and (b) enhancing capabilities at our Company’s Technology Centre in Bengaluru, Karnataka;
- Development of in-house battery assembly capabilities by our Company;
- Funding expansion of the manufacturing capacity of Bestway Agencies Private Limited (“BAPL”) (our wholly
owned Material Subsidiary); - Funding expansion of the manufacturing capacity of MLR Auto Limited (“MLR”) (one of our Material
Subsidiaries); - Increasing our Company’s stake in MLR through acquisitions;
- Increase digitization and deployment of information technology infrastructure by our Company; and
- Funding inorganic growth through unidentified acquisitions and general corporate purposes.
IPO Lead Managers aka Merchant Bankers
- Motilal Oswal Investment Advisors Limited
- IIFL Capital Services Ltd
- JM Financial Limited
