Greaves Cotton Limited has announced that the ₹530 crore rights issue of its material subsidiary, Greaves Electric Mobility Limited (GEML), has been fully subscribed, with the subsidiary’s board approving the allotment of equity shares to all eligible shareholders.
The company disclosed the development in a filing to the stock exchanges under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Greaves Cotton Invests ₹331 Crore
As part of the rights issue, Greaves Cotton subscribed to its full entitlement of approximately ₹331.12 crore, in line with the board approval announced on July 9, 2026.
Since all eligible shareholders subscribed to their respective entitlements, Greaves Cotton’s shareholding in Greaves Electric Mobility remains unchanged at 62.48%, ensuring that GEML continues to be a material subsidiary of the company.
Funds to Support EV Business Expansion
According to the company, the proceeds from the ₹530 crore rights issue will be utilized by Greaves Electric Mobility for:
- Capital expenditure
- Working capital requirements
- General corporate purposes
- Other business growth initiatives
The capital infusion is expected to strengthen the subsidiary’s expansion plans in India’s rapidly growing electric mobility market.
About Greaves Electric Mobility
Greaves Electric Mobility Limited, incorporated in June 2008, designs and manufactures electric two-wheelers and three-wheelers catering to personal mobility, commercial transportation, industrial applications and goods movement.
For the financial year ended March 31, 2026, the company reported:
- Turnover: ₹596.98 crore
- Net Worth: ₹117.75 crore
Its revenue has shown consistent growth over the past three financial years:
| Financial Year | Turnover |
|---|---|
| FY26 | ₹596.98 crore |
| FY25 | ₹444.31 crore |
| FY24 | ₹433.84 crore |
Transaction Details
Greaves Cotton clarified that the rights issue was offered proportionately to all existing shareholders and was exempt from related-party transaction provisions under SEBI Listing Regulations.
The transaction has been completed through cash consideration, and no regulatory approvals were required.
Outlook
The successful completion of the fully subscribed rights issue provides Greaves Electric Mobility with fresh capital to accelerate investments in manufacturing capacity, product development and business expansion. With India’s electric vehicle adoption continuing to gain momentum, the funding is expected to support GEML’s long-term growth strategy while enabling Greaves Cotton to maintain its strategic ownership in the EV business.
