Greaves Cotton Limited announced that its material subsidiary, Greaves Electric Mobility Limited (GEML), has withdrawn its proposed initial public offering (IPO). This decision follows GEML’s ongoing fund-raising through a rights issue and the expiration of its SEBI IPO observation letter. Consequently, the IPO scheduled for opening within months will not proceed as planned.
Greaves Electric Mobility IPO Cancelled
Greaves Cotton Limited has officially notified the stock exchanges that its material subsidiary, Greaves Electric Mobility Limited (GEML), will not proceed with its proposed initial public offering (IPO). The decision comes as GEML is undertaking a rights issue and in light of the regulatory timelines for its IPO approval.
Reason for Withdrawal
The Draft Red Herring Prospectus (DRHP) for GEML’s IPO was filed on December 23, 2024. Following approvals from NSE and BSE on February 17, 2025, SEBI provided its final observations on May 8, 2025. These observations required the IPO to open within 12 months, by May 7, 2026. However, due to the company’s decision to pursue a rights issue and the restrictions under SEBI ICDR Regulations for further issuances, GEML has chosen not to avail the one-time relaxation for observation letter validity. Consequently, the SEBI Final Observations have lapsed, leading to the withdrawal of the IPO.
Impact on Investors
This development means that the planned equity share offering by Greaves Electric Mobility Limited will not be moving forward as initially intended. Investors awaiting an opportunity to subscribe to GEML’s shares will not be able to do so through this IPO. The company will not be proceeding with the offer.
Source: BSE
