Greaves Cotton Limited is an engineering major company which has recently hit the headlines of the market through its announcements. The company is famous for its innovation in automotive engines, electric mobility, and industrial equipment solutions. It has come into the capital market that has made a huge buzz among the investors.
NEWS UPDATES On Greaves Cotton Limited
On the corporate front, Greaves Cotton Limited’s board of directors on Tuesday approved a proposal for the Initial Public Offering of its subsidiary, Greaves Electric Mobility Limited, through an IPO by fresh issue of equity shares as well as through an Offer-for-sale by selling shareholders. This resolution is pending shareholders’ approval of GEML and was made on 1st December 2024.
Issue of fresh equity and raising the funds would depend upon several factors like market conditions, regulatory approvals, and other plans of GEML. However, a specific number of existing shareholders will be selling their equities as part of an offer for sale. Subsequently, final details related to the size of IPO, pricing and so on along with details related to participants of an offer for sale will also be issued out. All these will be finalized through a consultative process with the current lead managers appointed.
Greaves Cotton’s electric mobility arm, Greaves Electric Mobility, got an in-principle approval by the Heavy Industries Ministry during September for incentives under Union Government’s Electric Mobility Promotion Scheme (EMPS) 2024.
The company claims its three-wheeler business is already eligible for such incentives through its subsidiary under the scheme. The EMPS had started in April and continued until September 30.
Market Performance and Investor Interest
Currently listed on the NSE under the ticker GREAVESCOT, the stock had traded in a price range of ₹135-₹155 over the past few months. Investors could see steady recovery from past losses with quarterly results which showed gradual improvements. In fact, the company could report an EPS growth to ₹0.28 from loss of ₹0.27 in the same quarter a year ago. Such steadiness coupled with its EV focused initiatives has helped fuel investor optimism.
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Authored by – Deepa Trivedi
Greaves Cotton Limited
IPO
