Greaves Cotton Invests ₹331 Crore in Greaves Electric Mobility Through Rights Issue
Greaves Cotton Limited has announced that it has subscribed to its full rights entitlement in the equity rights issue of its material subsidiary, Greaves Electric Mobility Limited (GEL). The company invested ₹331.12 crore in cash as part of GEL’s ₹530 crore rights issue, reaffirming its long-term commitment to expanding its electric mobility business.
The rights issue was fully subscribed by all eligible shareholders, and GEL’s Board approved the allotment of equity shares on August 2, 2026. Following the allotment, Greaves Cotton’s ownership in the subsidiary remains unchanged at 62.48%, ensuring GEL continues to be its material subsidiary.
Key Highlights of the Transaction
- Subsidiary: Greaves Electric Mobility Limited (GEL)
- Total Rights Issue Size: ₹530 crore
- Greaves Cotton’s Investment: ₹331.12 crore
- Mode of Investment: Cash subscription through rights entitlement
- Post-Issue Shareholding: Unchanged at 62.48%
- Business Segment: Electric two-wheelers and three-wheelers
Funds to Support Expansion and Business Growth
The proceeds from the rights issue will be utilized to strengthen GEL’s growth strategy, with the capital earmarked for:
- Capital expenditure (CapEx)
- Working capital requirements
- General corporate purposes
The fresh infusion is expected to support the company’s expansion plans and enhance its ability to capitalize on the growing demand for electric mobility solutions in India.
Strengthening Presence in India’s EV Market
Greaves Electric Mobility designs, develops, and manufactures electric two-wheelers and three-wheelers catering to personal transportation, commercial mobility, industrial applications, and last-mile goods delivery.
The investment reflects Greaves Cotton’s continued focus on building a strong presence in India’s rapidly growing electric vehicle ecosystem while supporting the subsidiary’s long-term operational and product expansion.
Financial Snapshot of GEL
For the financial year ended March 31, 2026, Greaves Electric Mobility reported:
- Turnover: ₹596.98 crore
- Net Worth: ₹117.75 crore
With this latest capital infusion, Greaves Cotton continues to reinforce its strategic investment in electric mobility, positioning GEL to accelerate growth, expand production capabilities, and strengthen its market position in India’s evolving EV industry.