Greaves Cotton shares rise 12% as unit Greaves Electric Mobility files draft IPO papers with ₹1,000 crore fresh issue

Greaves Cotton shares climbed as much as 12.2% to ₹257.4 apiece on the National Stock Exchange (NSE). At 11:43 am, the stock was up 10.27% to ₹252.89 a unit.

Greaves Electric Mobility IPO: Company files IPO papers

The initial share sale will be a fresh issuance worth ₹1,000 crore and an offer-for-sale (OFS) up to 51,000,000 by Greaves Cotton and up to 138,398,200 shares by Abdul Latif Jameel Green Mobility Solutions DMCC.

The money raised will be used for product research, to boost manufacturing capacity and to develop and build battery assembly capabilities.

Greaves Electric Mobility is the electric mobility unit of Greaves Cotton. It is a key player in India's electric vehicle technology industry and operates in the two-wheeler and three-wheeler segments. In the two-wheeler segment, the company has an e-scooter brand named 'Ampere'.

Earlier this month, the Board of Greaves Cotton had approved the selling of shares in Greaves Electric Mobility IPO.

"Post the proposed IPO, while the Company would continue to be a significant shareholder of GEML, whether GEML would continue to be a subsidiary of the company would be contingent on the final quantum of the OFS and the size of the IPO," Greaves Cotton had said in an exchange filing.