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About Greaves Electric Mobility Limited IPO
Greaves Electric Mobility Limited will soon launch its IPO, which will comprise a fresh issue and an offer for sale. While the fresh issue size is pegged at ₹1000 crore, the offer for sale consists of up to 189,398,200 equity shares with a face value of ₹1 each.
Objectives of Greaves Electric Mobility Limited IPO
The Net Proceeds of the Fresh Issue are proposed to be utilised in the following manner:
- Investment for product and technology development and in enhancing the capabilities at its Technology Centre in Bengaluru, Karnataka.
- Development of in-house battery assembly capabilities by the Company
- Funding expansion of the manufacturing capacity of Bestway Agencies Private Limited.
- Funding expansion of the manufacturing capacity of MLR Auto Limited.
- Increasing the Company’s stake in MLR through acquisitions.
- Increase digitization and deployment of information technology infrastructure by the Company.
- Funding inorganic growth through unidentified acquisitions and general corporate purposes.
Greaves Electric Mobility Limited IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band | TBA |
Fresh Issue | 1000 crore |
Offer for Sale | Up to 189,398,200 equity shares |
EPS (in ₹) for FY 24 | (3.03) |
Greaves Electric Mobility Limited IPO Share Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not less than 75% of the net offer |
Non-institutional Investors (NIIs) | Not more than 15% of the net offer |
Retail-individual Investors (RIIs) | Not more than 10% of the net offer |
Industry Outlook
Electric vehicles have gained significant traction in the 2W industry and have emerged as a promising solution for reducing emission. In India, E-2Ws are gaining popularity enabled by the government’s support via Faster Adoption and Manufacturing of Hybrid and Electric vehicles (FAME II), the EMPS subsidy, the latest PM E-DRIVE subsidy, state subsidies and tax rate cuts coupled with growing awareness and concern for environmental issues. In the 3W sector, from Fiscal 2021 to Fiscal 2024 industry sales rose at a sharp pace of approximately 58% CAGR.
Company Information
Greaves Electric Mobility Limited is among the pioneers in India's electric vehicle (EV) market, offering a diverse portfolio of E-2Ws and E-3Ws for both B2C and B2B segments. With over 16 years of experience in EV manufacturing, it leverages the 165-year engineering legacy of the Greaves group. Its product range includes high-speed, city-speed, and low-speed e-scooters, along with electric and ICE three-wheelers catering to passenger and cargo mobility.
Greaves Electric Mobility Limited IPO Strengths
Robust and diverse product portfolio spanning across all segments of E-2W and 3W catering to multiple-use case
According to the CRISIL Report, GREAVES ELECTRIC MOBILITY LIMITED is the only company in India offering a complete range of E-2W and 3W products, featuring models across various price segments. Its Ampere E-2W brand spans High Speed, City Speed, and Low Speed e-Scooters, catering to both B2C and B2B needs. The company’s 3W portfolio includes L3 E-3Ws, L5 E-3Ws, and ICE 3Ws for passenger and cargo applications, covering the entire 3W mobility spectrum. By focusing on affordability and optimal value, the company’s diverse product lineup provides a competitive edge while mitigating risk through multi-segment operations.
Robust customer care and service network focusing on delivering higher customer intimacy
As noted in the CRISIL Report, the company has 16 years of experience in designing and manufacturing EVs, particularly in the E-2W segment. This extensive background has given the company a comprehensive understanding of how vehicles evolve over their life cycles, enabling it to anticipate and address age-related servicing and component wear. Consequently, Greaves Electric Mobility is well-positioned to deliver comprehensive service, maintenance, and repairs tailored to each vehicle model’s maturity and usage profile.
Strong development and design capabilities
The company maintains a robust R&D and product development team with 103 employees, of which 83.49% hold engineering degrees as of September 30, 2024. The team comprises electrical, electronics, automotive, and mechanical engineers, bringing expertise in vehicle product development, design, engineering, and manufacturing.
Risks of Greaves Electric Mobility Limited IPO
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The company operates in a highly competitive and rapidly evolving automotive market, and failure to compete effectively or retain its market position could impact its growth and financial stability.
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The inability to attract and retain customers may significantly affect business prospects, revenue generation, and overall financial health.
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Delays in adapting to technological advancements and market trends, or failure to develop new products aligned with consumer demand, could negatively impact future growth.
All Financial Information about Greaves Electric Mobility Ltd
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Comparison with peers
| Parameter | Greaves Electric Mobility Limited | Ola Electric Mobility Limited | Ather Energy Limited |
|---|---|---|---|
Revenue from Operations for Fiscal 2024 (in ₹ crore) | 611.81 | 5009.83 | 1753.80 |
P/E for FY 24 | NA | NA | NA |
Return on Net Worth for FY 24 in % | (165.16) | (78.46) | (194.12) |
EPS in ₹ for FY 24 | (7.11) | (4.35) | (47.32) |
Anchor Investor Bidding Date TBA
IPO Registrar and Book Running Lead Manager
Link Intime India Private Limited is the registrar of the Greaves Electric Mobility Limited PO. The book running lead managers are:
- Motilal Oswal Investment Advisors Limited
- IIFL Capital Services Limited
- JM Financial Limited
Business Model
Greaves Electric Mobility Limited is a leading player in India’s electric vehicle market, offering a diverse portfolio of electric two-wheelers (E-2W) and three-wheelers (E-3W) for both personal and commercial use. The company follows a multi-channel distribution strategy, leveraging a pan-India dealer network alongside e-commerce platforms. With a strong focus on local sourcing for most components, it optimises costs and enhances supply chain efficiency. The company also benefits from synergies with the Greaves Group, a legacy Indian brand, further strengthening its market presence.
Company Growth Trajectory
Despite fluctuations in demand, the company’s E-2W sales volume increased from 53,294 units in FY22 to 108,710 units in FY23, before declining to 47,818 units in FY24. Its 3W sales rebounded from 6,865 units in FY23 to 13,465 units in FY24, marking a 96.14% YoY growth. Revenue from operations grew from ₹520.607 crores in FY22 to ₹1121.568 crores in FY23, reflecting a 115.43% increase, with E-2W revenue surging 149.27% YoY. Meanwhile, 3W revenue declined by 31.35% in FY23 before recovering in FY24.
Greaves Electric Mobility Limited Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crore) | 641.31 | 1156.45 | 521.37 |
EBITDA (in ₹ crore) | (205.62) | (23.08) | (17.78) |
Profit Before Tax(in ₹ crore) | (694.17) | (19.74) | (41.54) |
Profit After Tax (in ₹ crore) | (691.57) | (19.91) | (45.38) |
EPS (in ₹) | (7.11) | (0.21) | (0.76) |
Greaves Electric Mobility Limited Cash Flow
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Net Cash Used in Operating Activities (in ₹ crore) | (310.70) | (264.46) | (70.23) |
Net Cash Used in Investing Activities (in ₹ crore) | 224.22 | (597.64) | (67.93) |
Net Cash Generated from Financing Activities (in ₹ crore) | 47.29 | 891.66 | 156.11 |
Cash and Cash Equivalent at the End of the Year (in ₹ crore) | 11.91 | 51.11 | 21.55 |
How to Check the Allotment Status of Greaves Electric Mobility Limited IPO?
You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar Link Intime India Private Ltd. To check the status on the BSE website:
- Visit the BSE website
- Click on “Investor Services” and choose “Application Status Check”
- Choose the issue type — Equity or Debt
- Select the Issue Name from the drop-down. The issue name is the company’s name, which is Greaves Electric Mobility Limited.
- Enter your application number or PAN number
- Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status
To check status on the website of Link Intime Private Ltd:
- Visit the website of Link Intime Private Ltd
- Choose ‘Public Issues’ from Investor Services dropdown
- Choose the name of the company from ‘Select Company’ dropdown
- Enter any of these - PAN Number, Application Number, DP/Client ID, Account Number / IFSC
- Click on Submit to check the status
How to Apply for Greaves Electric Mobility Limited IPO?
Here are the steps to apply for Greaves Electric Mobility Limited IPO:
- Step 1: Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Greaves Electric Mobility Ltd IPO FAQs
What is the Greaves Electric Mobility Limited IPO
The Greaves Electric Mobility Limited IPO is a 100% book-built issue comprising a fresh offer and an offer-for-sale. The fresh issue size is pegged at ₹1000 crores and the offer for sale includes 189,398,200 shares.
Is Greaves Electric Mobility Limited IPO coming?
Yes, Greaves Electric Mobility Limited is expected to come up with its IPO soon.
Who is the CEO of Greaves Electric Mobility Limited?
Kunnakavil Vijaya Kumar is the CEO of Greaves Electric Mobility Limited
From where can I read more about the IPO of Greaves Electric Mobility Limited ?
You may read more about Greaves Electric Mobility Limited and its IPO from the company’s draft red herring prospectus (DRHP) here.
