Greaves Cotton Board Approves Up to ₹331 Crore Subscription to GEML Rights Issue

Greaves Cotton has approved participation in the proposed rights issue of its material subsidiary, Greaves Electric Mobility Limited (GEML), with an investment of up to ₹331 crore. The company's board has cleared the proposal to fully subscribe to its entitlement in the rights issue, subject to the completion of the transaction.

The proposed investment is intended to support GEML as it expands its presence in India's electric mobility market. Greaves Cotton said the move aligns with its long-term strategy of investing in future-focused businesses and reflects its continued support for the subsidiary.

Greaves Electric Mobility is the group's electric vehicle business, with a portfolio of electric two- and three-wheelers for passenger and cargo applications. The company is also preparing for an initial public offering, having previously filed a draft red herring prospectus with the Securities and Exchange Board of India.

"Our proposed investment in Greaves Electric Mobility Limited reflects our conviction in the long-term opportunity presented by India's transition to sustainable mobility. Backed by a strong balance sheet, healthy cash position and our disciplined capital allocation approach, we continue our focus on the broader Greaves. Next growth journey," said Parag Satpute, Managing Director and Group CEO, Greaves Cotton.