Greaves Cotton shares rally 8% as GEML files draft IPO papers with Sebi

Greaves Cotton Ltd saw its shares rallying 8 per cent in Tuesday's trade after a material subsidiary of the company, Greaves Electric Mobility Limited (GEML), filed draft red herring prospectus with the market regulator Sebi. Following the development, the stock climbed 8.42 per cent to hit a high of Rs 248.50 on BSE.

The scrip has rallied a solid 45 per cent in the past one month and in a reply to BSE on the price movement, the company on December 12 said: "We would like to bring to your attention the disclosures pertaining to the IPO of the equity shares of Greaves Electric Mobility Limited (“GEML”), material subsidiary of the Company, made on 01st December 2024 and 11th December 2024. At present, the Company has no further disclosures to make that would impact the price or volume behavior of the scrip," it said.

In a filing to BSE, Greaves Cotton on Tuesday said it filed the DRHP on December 23 with Sebi, BSE and NSE in connection with its initial public offering (IPO) of equity shares with a face value of Re 1 each.

The proposed issue would comprise of a fresh issue of such number of equity shares, aggregating up to Rs 1,000 crore and an offer for sale (OFS) of up to 51,000,000 shares by the company and up to 138,398,200 shares by Abdul Latif Jameel Green Mobility Solutions DMCC.

It noted that the offer remains subject to receipt of necessary regulatory approvals, market conditions and other considerations.

Greaves Cotton had in an earlier stock exchange filing this month had said that the price and other details of the proposed IPO will be determined in due course by the competent body based on provisions of applicable law, market conditions and other considerations, including GEML valuations.