Muthoot Capital surges 6% on partnership with Greaves Finance for electric 2-wheeler financing

Shares of Muthoot Capital Services Ltd (MCSL) surged nearly 6% to a high of ₹307 apiece on Wednesday, after the company announced its partnership with Greaves Finance to expand electric two-wheeler financing across India.

The non-banking financial company promoted by the Muthoot Pappachan Group has entered into a partnership with evfin, the 100% ev-focused lending platform of Greaves Finance Limited, a non-banking financial company and a wholly owned subsidiary of Greaves Cotton.

The collaboration with evfin encompasses a total deal size of up to ₹150 crore ($18 million). The deal highlights the scale and ambition of the initiative aimed at fostering widespread adoption of electric vehicles in India, Muthoot Capital Services said in an exchange filing.

Muthoot Capital, one of India's fastest-growing NBFCs, will launch a pioneering colending arrangement to increase the availability of electric two-wheeler financing solutions across India, the stock exchange filing mentioned.

The company further said that the demand for electric vehicles continues to surge in the country and this deal shows the commitment of both companies to accelerating the adoption of sustainable transportation alternatives.

This collaboration is aimed at facilitating affordable, customised and convenient financing options for customers looking to purchase electric two-wheelers while leveraging evfin's expertise in customised automotive financing based on asset lifecycle management and Muthoot Capital's established presence in the financial sector, the company said.

"We are thrilled to collaborate with Muthoot Capital to introduce this transformative co-lending partnership. This partnership not only underscores our dedication to promoting sustainable mobility solutions but also reaffirms our commitment to providing innovative financing options that cater to the evolving needs of our customers,” said Greaves Finance Ltd CEO Sandeep Divakaran said,

At 14:32 pm, shares of Muthoot Capital Services were trading at ₹280.05 apiece, down by 3.3%, from the previous close on NSE.