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Greaves Electric Mobility completes allocation of 35.6% stake to Abdul Latif Jameel for ₹1,171 crore

BL Pune Bureau | Updated on: Jun 24, 2022

The proceeds to be utilised for developing new products, associated technologies, brand awareness, among others

Greaves Electric Mobility Private Limited, a subsidiary of Greaves Cotton Limited, announced the completion of allotment of equity shares to Abdul Latif Jameel, an independent, family-owned, diversified global investor and operator following the announcement made in early June.

The company has allotted 68,35,450 equity shares of face value ₹10 each representing 35.80 per cent shareholding on a fully diluted basis, to Abdul Latif Jameel, by way of preferential allotment through private placement basis for a consideration of ₹1,171 crore (USD 150 million).

Following the allotment, the company continues to be a subsidiary of Greaves Cotton Limited and the resultant shareholding on a fully diluted basis is now at 61.38 per cent.

Greaves Electric Mobility manufactures electric two-wheelers under the brand name of Ampere Vehicles and three-wheeler vehicles (E-Auto and E-Rickshaw) under the brands Ele and Teja. Greaves Electric Mobility has grown from a small base to more than US$100 million annual revenue. Over the last few years, the company focused on expanding its product offerings through acquisitions, and now it caters to the E2W/ E3W ecosystem in India.

Greaves Electric Mobility has a strong track record of identifying EV opportunities early and scaling up business operations.

The proceeds from this investment will be used to develop new products, associated technologies, brand awareness, aiming to transform the company into a leading global EV manufacturer. The investment aims to support Greaves Electric Mobility, as it transitions into the next phase of growth.

This strategic investment marks a major milestone in the development of the E2W/E3W ecosystem in India, currently the world’s fourth-largest automotive market where the share of EVs in the two-wheeler and three-wheeler segments is expected to increase significantly. These segments are less dependent on commercial charging infrastructure, unlike passenger cars.

“By offering cleaner mobility options, Greaves Electric Mobility and Abdul Latif Jameel will assist India in achieving its objective of reducing carbon emissions by one billion tonnes by 2030. This is in line with their shared vision of striving to provide clean, affordable and safe mobility solutions” the statement added.

Published on June 24, 2022
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