Greaves Cotton Limited and Abdul Latif Jameel Green Mobility Solutions (ALJ) have fully subscribed to the ₹530 crore rights issue of its subsidiary, Greaves Electric Mobility Limited (GEML), in proportion to their existing shareholdings. The transaction, confirmed on August 03, 2026, ensures that Greaves Cotton retains its controlling stake of 62.48% while injecting significant capital into GEML's expansion plans for electric two-wheelers and three-wheelers.

The Board of Directors of GEML approved the allotment of equity shares on August 02, 2026. The disclosure was made 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 from related-party transaction regulations as it was offered to all existing shareholders at arm's length. No promoter or group company holds any interest in the transaction other than their existing shareholding.

Capital Allocation Strategy

The proceeds from the ₹530 crore infusion will be utilized to strengthen GEML's next phase of growth. Key areas of investment include the development of next-generation products, Battery Management Systems (BMS), powertrains, and new-age technology. The capital will also support the expansion of GEML's electric two-wheeler and three-wheeler portfolio and deepen its technology capabilities in a competitive market.

While GEML has decided not to avail itself of the SEBI extension for a proposed public offer, it remains committed to pursuing an initial public offering at an appropriate time, subject to market conditions and regulatory approvals.

Financial Context

GEML, incorporated on June 02, 2008, operates in the Automobiles - Electric Vehicles sector. As of March 31, 2026, the company reported a net worth of ₹117.75 crore. The subsidiary has demonstrated consistent turnover growth over the past three fiscal years:

What the Numbers Show

The full subscription by anchor shareholders signals strong confidence in GEML's execution capabilities and market position. With turnover rising from ₹433.84 crore in FY23-24 to ₹596.98 crore in FY25-26, the capital infusion addresses the funding needs for scaling operations without diluting control. Greaves Cotton's Chairman, Karan Thapar, noted that the investment reflects confidence in GEML's strategic direction and its role in advancing India's clean mobility transition. Vikas Singh, Managing Director of GEML, emphasized that the funds will accelerate innovation and strengthen the product pipeline as the EV market moves toward mass adoption.

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.