Greaves Cotton Stock Soars 16% as Greaves Electric Mobility Prepares for IPO

Greaves Cotton saw a notable 16 per cent jump in its share price on Friday, reaching a peak of Rs 271.90 during intra-day trading on the National Stock Exchange (NSE), driven by heavy trading volumes.

This surge comes ahead of the initial public offering (IPO) of its subsidiary, Greaves Electric Mobility Limited (GEML). By 1:05 PM, more than 50 million shares, representing 21.55 per cent of Greaves Cotton’s total equity, had exchanged hands.

The stock turnover reached Rs 1,301 crore, constituting 21 per cent of the company’s market capitalization, which stands at Rs 6,214 crore.

In a filing on December 23, Greaves Cotton revealed that GEML had submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI), BSE, and the NSE in connection with its IPO.

The IPO will consist of a fresh issue of equity shares, expected to raise up to Rs 1,000 crore, alongside an offer for sale (OFS). The OFS includes up to 51 million equity shares from Greaves Cotton and 138.4 million shares from Abdul Latif Jameel Green Mobility Solutions DMCC. The offer is contingent on regulatory approvals, market conditions, and other factors.

Greaves Cotton’s share price has surged by 76 per cent over the past six weeks, up from Rs 154.50 on November 13, 2024. The company, known for its diversification into multiple sectors, is a prominent player in the engineering industry.

Initially recognized for producing single-cylinder diesel engines, Greaves Cotton has transformed into a provider of sustainable, fuel-agnostic mobility solutions. The company aims to reach a billion people by 2030 through its focus on green mobility.

The company operates across five key business units: Greaves Engineering, Greaves Electric Mobility, Greaves Retail, Greaves Finance, and Greaves Technologies. This structure allows Greaves Cotton to be agile while maintaining a strategic focus on innovation. With substantial investments in both technology and human capital, the company is positioning itself as a leader in India’s electric vehicle (EV) market.

Greaves Retail, another arm of the company, has recently expanded its portfolio. On December 11, it unveiled a new range of electrified light construction equipment at the bauma CONEXPO India 2024.

These products, which integrate advanced electrification technology, provide zero-emission solutions, enhancing performance while reducing operational costs.