In a significant development for India’s electric vehicle (EV) sector, Greaves Electric Mobility (GEML) has received the green light from the Securities and Exchange Board of India (SEBI) to proceed with its IPO. The capital market regulator issued the observation letter on 8 May 2025, following the submission of the draft red herring prospectus (DRHP) on 26 December 2024. Greaves Electric IPO is a mix of fresh issue and offer-for-sale (OFS) and signals a strategic inflection point for both GEML and the broader EV landscape in India.
Greaves Electric IPO Snapshot
The proposed IPO is a hybrid structure involving a fresh issue of equity shares aggregating up to INR 1,000 crore, alongside an offer for sale (OFS) of up to 18,93,98,200 equity shares. The total offer size and issue price are yet to be finalized. Key shareholders divesting part of their stake include:
- Greaves Cotton (Promoter): Offering up to 5.10 crore shares
- Abdul Latif Jameel Green Mobility Solutions DMCC (Investor): Offering up to 13.84 crore shares
A Strong Pedigree and Strategic Backing
GEML is the electric mobility arm of Greaves Cotton, a 165-year-old Indian engineering powerhouse known for its fuel-agnostic powertrains and nationwide footprint. Acquired in 2018, GEML was born out of Ampere Vehicles, one of India’s early EV pioneers. The company benefits from the technology and supply chain synergies of the Greaves Group and the strategic insight of global investor Abdul Latif Jameel.
GEML boasts a diverse portfolio of EVs and internal combustion engine (ICE) three-wheelers that span across both B2B and B2C segments.
National Manufacturing and Sales Backbone
GEML has built a vertically integrated manufacturing and distribution network:
- Three plants in Ranipet (TN), Greater Noida (UP), and Toopran (TS).
- As of 30 September 2024:
- 309 E-2W dealers
- 188 3W dealers
- 90%+ of dealership footprint in non-metro cities
- Synergies with Greaves Retail network: 210 Greaves Care outlets, 10,000+ retailers, and 21,000+ mechanics.
In addition to offline presence, GEML has partnered with e-commerce platforms and developed its own online booking portal to sell its Nexus range directly to customers.
Financial Performance
Despite a strong product and distribution strategy, GEML’s financials reveal a company still grappling with profitability:
| Metric | FY2022 | FY2023 | FY2024 | H1 FY2025 |
|---|---|---|---|---|
| Revenue from Operations | 520.6 | 1,121.6 | 611.8 | 302.2 |
| Operating EBITDA | (17.8) | (23.1) | (205.6) | (91.5) |
| Net Loss | (45.4) | (19.9) | (691.6) | (106.2) |
| E-2W Sales (No. of Units in Thousand) | 53.29 | 108.71 | 47.82 | 22.43 |
| 3W Sales (No. of Units in Thousand) | 10.39 | 6.87 | 13.47 | 7.08 |
While the E-2W segment faced a 59% decline in revenue year-over-year in FY24, the 3W segment posted a 166% growth, signifying shifting consumer patterns and perhaps a more profitable market fit in the 3W commercial use case.
Capacity utilization remains suboptimal, especially in E-2W (under 10% in FY2024), signaling room for better scalability.
Greaves Electric Moblity IPO – Use of Proceeds
The net proceeds from the fresh issue will fund core strategic initiatives:
- INR 375.27 crore for R&D and tech development at the Bengaluru Tech Centre.
- INR 82.9 crore to build in-house battery assembly capability.
- INR 58.15 crore for manufacturing capacity expansion at BAPL and MLR.
- INR 73.67 crore to increase stake in MLR Auto.
- INR 27.8 crore towards digital infrastructure.
- Additional funds earmarked for inorganic growth via acquisitions and general corporate purposes.
The Market Opportunity: EV Momentum in India
As per CRISIL, electric 2-wheeler sales in India grew from 8,02,000 units in FY22 to 17.50 lakh in FY24, representing a 73% CAGR. E-3Ws, meanwhile, have surged even faster at 160% CAGR from FY19 to FY24. GEML holds more than 5% market share in key states like Tamil Nadu and Bihar and is well-positioned to capitalize on India’s EV adoption wave.
Conclusion
Greaves Electric Mobility’s upcoming IPO presents a compelling investment opportunity in one of India’s most dynamic and policy-backed sectors — electric mobility. However, investors should remain cautious of its deep losses, low utilization rates, and need for heavy CAPEX. The company’s roadmap suggests a clear pivot toward improving vertical integration, digital transformation, and inorganic expansion — all crucial for scaling efficiently.
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