Greaves Electric Mobility, a subsidiary of Greaves Cotton has completed the allocation of 35.8 per cent share to Abdul Latif Jameel, an independent, family-owned, diversified global investor and operator following up to its investment of $150 million (Rs 1,171 crore).
Greaves Electric has allotted 68,35,450 equity shares of face value Rs 10 each representing 35.80 per cent shareholding in the company on a fully diluted basis by way of preferential allotment through private placement basis for a share subscription consideration of Rs 1,171 crore ($150 million).
Following the allotment, the e-mobility arm continues to be a subsidiary of Greaves Cotton and the resultant shareholding of Greaves Cotton in the company on a fully diluted basis is now 61.38 per cent.
At present, Greaves Electric Mobility manufactures electric two-wheelers under Ampere Vehicles brand and three-wheeler vehicles (e-auto and e-rickshaw) under the brands Ele and Teja. The EV maker has a revenue of more than $100 million (Rs 780 crore) annual.
The investment will be used to develop new products, associated technologies and brand awareness to make Greaves Electric a leader globally in the EV space. The company says this strategic investment marks a major milestone in the development of the electric two- and three-wheeler 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.