Greaves Electric Mobility: Ambitious IPO Journey Begins
Greaves Electric Mobility has taken a significant step towards capital expansion through SEBI. The company is planning for issuing new shares for Rs 1000 crore. AMC’s Abdul Latif Jameel Green Mobility Solutions are on course to significantly offload their holdings. It reveals that at present, Greaves Cotton owns 62.5 % of the shares of the company. IM etc., Managing this critical offering are Motilal Oswal, IIFL Capital, and JM Financial. The electric mobility industry, in the last few quarters, could be said to have recorded notable improvements.
Performance and Market Conditions
The company declared revenue for the September 2024 quarter, revenue stood at Rs. 302.2 crore. Their net loss was worse during this period standing at Rs 107 crore. The analysis of the FY24 reveals the wretched state of electric scooter sales. In the same period, their total revenues have come down to Rs 61182 lakh in FY24 from previous financial years. The entry motorbike category saw a sharp decline in its sales detail. Nevertheless, the key three-wheel segment continued its spectacular rise, with its sales jumping to double the previous year’s results.
Manufacturing Capabilities and Future Prospects
The company has invested in three ultra-modern plants in three different states of India. This production facility is in Ranipet where they only manufacture electric two-wheelers with the Ampere brand name. The Greater Noida plant holds expertise in manufacturing new-generation electric three-wheelers. The Toopran facility assembles electric and internal combustion engine vehicles. It has a widespread dealership network across the 27 states of the country. At present, they have a wide umbrella of dealers, which is 309 selling electric two-wheelers and 188 for electric three-wheelers.
Research and Development Initiatives
The company plans substantial investments in product research and development activities. They aim to strengthen their in-house battery assembly capabilities through fresh funds. The IPO proceeds will support enhancement of their existing manufacturing infrastructure. Their commitment to innovation reflects in their diverse product portfolio development. The research focus includes both high-speed and city-speed electric scooters.
Competitive Landscape Analysis
Greaves Electric faces strong competition from established players like Ola Electric. They compete with renowned manufacturers including Ather Energy and TVS Motor. The market presence of Bajaj Auto and Hero MotoCorp poses significant challenges. Their comprehensive vehicle portfolio helps maintain competitive advantage in the market.
Distribution Strategy of Greaves Electric Mobility
The company maintains a robust presence across multiple Indian states and territories. Their dealer network continues to expand, reaching more potential customers nationwide. The strategic location of manufacturing facilities ensures efficient distribution across regions. Their product range caters to both passenger and cargo transportation needs. The company focuses on strengthening its position in existing markets.
Financial Structure and Stakeholder Impact
Greaves Cotton plans to divest approximately 8.5% of their current holding. Abdul Latif Jameel will reduce their stake by selling 39.54% shares. The book-building process will determine the final price band for the IPO.
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