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Greaves Cotton Limited has approved an investment of up to 331 crore in the proposed rights issue of its material subsidiary, Greaves Electric Mobility Limited (GEML). The company's Board of Directors has cleared the proposal to fully subscribe to its entitlement in the rights issue, with the investment subject to the completion of regulatory approvals and the transaction process.
The company said the investment is aimed at strengthening GEML's presence in India's rapidly expanding electric mobility market and supporting its future growth plans. According to Greaves Cotton, the move aligns with its long-term strategy of investing in future-focused businesses while reaffirming its commitment to the continued growth of its electric mobility subsidiary.
Greaves Electric Mobility operates the group's electric vehicle business, offering a portfolio of electric two-wheelers and three-wheelers for both passenger and cargo applications. The company is also preparing for an Initial Public Offering (IPO) and has already filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI).
Parag Satpute, Managing Director and Group CEO of Greaves Cotton, said the proposed investment reflects the company's strong confidence in the long-term growth potential of India's transition towards sustainable mobility. He added that, backed by a strong balance sheet, healthy cash position and a disciplined capital allocation strategy, Greaves Cotton remains committed to advancing its broader Greaves Next growth journey.
