Highlights
Greaves Electric Files Draft Red Herring Prospectus for IPO
Greaves Electric, the parent company of electric vehicle manufacturer Ampere, submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) on Monday.
The company aims to generate funds through:
- A fresh issue of equity shares totalling up to Rs 1,000 crore (approximately $119 million)
- An offer for sale (OFS) consisting of up to 18.94 crore equity shares
Greaves Cotton Limited, the promoter shareholder, plans to sell 8.5% of its stake in this offer, while Abdul Latif Jameel Green Mobility intends to dispose of 39.54% of its shares in Ampere.
Pricing and Management
The price range and minimum lot size will be established in collaboration with the book-running lead managers shortly through the book-building process. The lead book-running managers for Ampere include:
- Motilal Oswal
- IIFL Capital
- JM Financial
As stated in the DRHP, prior to the offer for sale, Greaves Cotton Limited held 62.48% of the shares, while Abdul Latif Jameel Green Mobility Solutions DMCC owned 34.44% of Ampere.
Financial Performance
For the quarter ending September 2024, Ampere reported:
- Revenue from operations: Rs 302 crore
- Net loss: Rs 107 crore
In the previous fiscal year (FY24), Ampere experienced a 46% drop in revenue, with scooter sales decreasing by nearly 60%. Additionally, the company’s losses surged over tenfold to Rs 215 crore, largely due to a significant reduction in scale.
Market Activity
In August, Ola Electric, another electric vehicle manufacturer, filed for its IPO and successfully raised Rs 6,145 crore through a fresh issue. This company offered shares in a price band of Rs 72-76, which are currently trading at ₹94 (as of 11:30 AM), resulting in a market capitalisation of Rs 41,488 crore ($4.93 billion). Furthermore, another EV producer, Ather, has submitted its DRHP for a fresh issue of Rs 3,100 crore and is anticipated to launch its IPO shortly.