Greaves Cotton Limited has subscribed to its full entitlement of approximately ₹331.12 crore in the fully subscribed ₹530 crore rights issue of its material subsidiary, Greaves Cotton Electric Mobility Limited (GEML). The Board of Directors of GEML approved the allotment of equity shares to all eligible shareholders on August 02, 2026, ensuring that Greaves Cotton’s shareholding remains unchanged at 62.48%. This move allows GEML to raise capital for expansion while preserving the existing ownership structure between the parent company and other shareholders.

The transaction was disclosed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The rights issue was exempt as a related party transaction under the SEBI Listing Regulations, as it was offered to all existing shareholders. Except for their existing shareholding in GEML, no promoter, promoter group, or group companies have any other interest in the transaction, which was conducted at arm’s length.

Financial Context of GEML

GEML, incorporated on June 02, 2008, operates in the Automobiles - Electric Vehicles sector, designing and manufacturing electric two-wheelers and three-wheelers for personal mobility, industrial applications, and goods movement. The subsidiary has shown consistent growth in turnover over the past three years.

As of March 31, 2026, GEML reported a net worth of ₹117.75 crore. The proceeds from the rights issue will be utilized by GEML towards capital expenditure, working capital requirements, and general corporate purposes.

What the Numbers Show

The fully subscribed nature of the ₹530 crore rights issue indicates strong investor confidence in GEML’s growth trajectory within the electric vehicle sector. With turnover rising from ₹433.84 crore in FY23-24 to ₹596.98 crore in FY25-26, the capital infusion is positioned to support further scaling of operations. Greaves Cotton’s decision to subscribe to its full entitlement ensures that its controlling stake of 62.48% is not diluted, maintaining strategic oversight over the subsidiary’s expansion plans without altering the current governance structure.

Greaves Cotton 's electric mobility subsidiary, Greaves Electric Mobility Limited (GEML), announced a strategic partnership with Muthoot Capital Services on July 28, 2026, to enhance access to affordable financing for its Ampere brand electric two-wheelers. The collaboration aims to lower upfront cost barriers for consumers across urban and semi-urban India by leveraging Muthoot Capital’s retail non-banking financial company (NBFC) network. This move is designed to accelerate electric vehicle (EV) adoption by providing flexible repayment options tailored to diverse income profiles, including salaried professionals, self-employed individuals, gig workers, and small business owners.

The partnership addresses a critical hurdle in the EV market: affordability. By integrating GEML’s product portfolio with Muthoot Capital’s lending capabilities, the alliance seeks to make ownership financially sustainable for a broader customer base. The financing solutions will be available through Ampere’s extensive dealer network, which includes over 500 touchpoints across India. This expansion of financial accessibility supports GEML’s strategy to penetrate deeper into emerging markets beyond metropolitan centers.

Strategic Objectives

The collaboration focuses on democratizing access to clean mobility. Key aspects of the partnership include:

Manoj M. P., Chief Business Officer at Greaves Electric Mobility, emphasized that financing plays a crucial role in supporting EV buyers. He stated that the partnership combines Ampere’s growing portfolio with trusted financial services to remove barriers and empower customers with greater choice and convenience.

Mathews Markose, CEO of Muthoot Capital Services, highlighted the importance of inclusive mobility financing in the country’s transition to sustainable transportation. He noted that the partnership leverages Muthoot’s deep understanding of retail financing and technology-enabled lending to deliver seamless and transparent solutions. This approach aims to create long-term value for customers, dealers, and the broader EV ecosystem.

Market Context

Greaves Electric Mobility has over 17 years of experience in designing and manufacturing electric vehicles, holding multiple India and Asia Book of Records titles for its scooter performance and durability. Backed by the 165-year legacy of Greaves Cotton Limited, GEML operates three manufacturing plants in Hyderabad, Noida, and Ranipet. The company serves both the electric two-wheeler and three-wheeler segments, supported by subsidiaries MLR Auto Limited and Bestway Agencies Private Limited.

This partnership aligns with GEML’s ongoing efforts to strengthen its market presence through strategic alliances and expanded dealer networks. As India pushes for greater EV adoption, such collaborations between manufacturers and NBFCs are becoming essential to drive mass market penetration and support the nation’s sustainable mobility goals.