Greaves Cotton share price climbs 20% to hit all-time high; check details

Shares of the Indian engineering company Greaves Cotton jumped by 20% on Friday, December 27, ahead of its subsidiary Greaves Electric Mobility Limited’s initial public offering (IPO).

More than 50 million shares of the company, or 21.55% of the total equity, changed hands on the NSE on Friday. The company’s current market capitalisation stands at ₹6,497.86 crore and the stock is trading 20% up at ₹282.07 apiece on the National Stock Exchange (NSE), hitting its 52-week high on the bourses. NIFTY50, on the other hand, rose by nearly 0.35% on Friday.

In the last one and a half months, the Greaves Cotton scrip has shot up by almost 76%. Along with the upcoming IPO for its subsidiary, the company’s shares surged on the back of favourable ratings by some analysts.

Greaves Electric Mobility IPO

As per an exchange filing dated December 23, the company announced the IPO for its electric vehicle arm Greaves Electric Mobility Ltd. The issue size of the IPO is ₹1,000 crore, which will be a combination of a fresh issue and an offer-for-sale (OFS) component. The fresh issue will be worth ₹1,000 crore, and the OFS of up to 18.9 crore shares, 5.1 crore by Greaves Cotton Limited and 13.8 crore by Abdul Latif Jameel Green Mobility Solutions DMCC.

The company aims to use the proceeds from the IPO for product research, development and building of its battery assembly capability and to boost manufacturing capacity.

The company has filed DRHP with SEBI for the Greaves Electric Mobility IPO.

About Greaves Cotton

Greaves Cotton is an engineering company offering a wide range of products, including single-cylinder diesel engines and end-to-end mobility solutions. The company has five business arms: Greaves Engineering, Greaves Electric Mobility, Greaves Retail, Greaves Finance, and Greaves Technologies.

Earlier this month, the company’s mobility and green energy solutions arm, Greaves Retail, introduced a new range of high-performance electrified light construction equipment at bauma CONEXPO India 2024 in Greater Noida.

“Greaves Retail, a division of Greaves Cotton Limited and a leading provider of clean mobility and energy solutions in the e2W, ICE 2W, e3W, ICE 3W, and SCV segments, proudly announced the launch of its new range of high-performance electrified light construction equipment at bauma CONEXPO India 2024. With sustainability at the forefront, this new range of equipment integrates cutting-edge electrification technologies to deliver zero-emission solutions, enhancing performance while lowering operational costs. This strategic move into the Construction Equipment Sector underscores Company's commitment to delivering innovative, reliable solutions that prioritise environmental responsibility and sustainability,” as per a press release by Greaves Cotton dated December 11.