Greaves Cotton Limited has announced the successful completion of the INR 530 Crore rights issue by its material subsidiary, Greaves Electric Mobility Limited (GEML). The Company subscribed to its full entitlement of INR 331.12 crore. As a result, Greaves Cotton maintains its shareholding in GEML at 62.48%, solidifying GEML’s position as a material subsidiary. The funds raised by GEML will be utilized for capital expenditure, working capital, and general corporate purposes.
Greaves Electric Mobility Rights Issue Concludes
Greaves Cotton Limited confirmed that its material subsidiary, Greaves Electric Mobility Limited (GEML), has successfully completed its INR 530 Crore rights issue on August 2, 2026. The Company fully subscribed to its allocated portion, investing approximately INR 331.12 crore. This strategic participation ensures Greaves Cotton retains its substantial shareholding of 62.48% in GEML, reinforcing its status as a material subsidiary.
Financial Highlights and Future Utilization
As of March 31, 2026, GEML reported a turnover of INR 596.98 Crore and a net worth of INR 117.75 Crore. The proceeds from this rights issue are earmarked for crucial investments by GEML, including capital expenditure, bolstering working capital requirements, and supporting general corporate objectives. The rights issue was exempt from related party transaction regulations, with no additional interest from the promoter group beyond their existing shareholding.
Industry and Operations
GEML operates within the dynamic Automobiles – Electric Vehicles sector, focusing on the design and manufacturing of electric two-wheelers and three-wheelers for diverse applications. The company’s significant turnover for the last three fiscal years indicates consistent growth and market presence. This strategic funding ensures GEML is well-positioned to capitalize on future opportunities in the burgeoning electric mobility market.
Source: BSE
