Greaves Cotton surges upon securing USD 220 million funding for its electric mobility business!
The investment aims to support Greaves Electric Mobility as it transitions into the next phase of growth.
Greaves Cotton Ltd, a diversified multi-product and multi-location engineering company announced today that it has secured funding for a total of USD 220 million from Abdul Latif Jameel for Greaves Electric Mobility (GEM), the electric mobility business of the company.
Greaves Electric Mobility (GEM) manufactures electric two-wheelers under the brand name Ampere Vehicles and three-wheeler vehicles (E-Auto and E-Rickshaw) under the brands Ele and Teja.
Over the last few years, GEM focused on expanding its product offerings by way of acquisitions. Today, it caters to the E2W / E3W ecosystem in India. The company has a strong track record of identifying EV opportunities early and scaling up business operations.
How association with Abdul Latif Jameel is strategically important:
Abdul Latif Jameel is a private family-owned global investor and operator that is owned by the Jameel Family. As one of the leading independent distributors of Toyota products for over 65 years, the investor has extensive global experience in the automotive market. The Jameel family are also early-stage investors and the third-largest shareholder of Rivian, a US based electric vehicle manufacturer. The family are also investors in other cutting-edge innovators such as US venture-backed aerospace company Joby Aviation via their global investment arm JIMCO.
The transaction details
Abdul Latif Jameel shall make an initial investment of USD 150 million (approx. Rs 1160 crore) for a 35.8% stake on a fully diluted basis in Greaves Electric Mobility. The latter also has an option to draw down an additional investment of USD 70 million within a period of 12 months.
GEM shall utilize the proceeds from this funding to develop new products, associated technologies, and build brand awareness with an intent to transform the company into a leading global EV manufacturer.
At 12.43 pm, the shares of Greaves Cotton Ltd were trading at Rs 162.50, an increase of 0.46% from the previous closing price of Rs 161.75 on BSE.
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