Shares of Greaves Cotton Limited surged 2.41% to ₹191.48 after the company announced board approval for the Initial Public Offering (IPO) of its subsidiary, Greaves Electric Mobility Limited (GEML). The IPO will include a fresh issue of equity shares and an offer for sale (OFS) by existing shareholders.
Key Details of the IPO
- Structure:
- A combination of a fresh equity issue and OFS by existing shareholders.
- Purpose:
- To raise capital through the fresh issue of shares.
- Allow existing shareholders to sell a portion of their stake.
- Approval Status:
- The decision was approved by the board on December 1, 2024 and is pending shareholder approval at GEML.
- Next Steps:
- The IPO will be launched based on market conditions, regulatory approvals, and other considerations.
- Final details such as IPO size, pricing, and participants in the OFS will be determined in consultation with book-running lead managers.
The IPO news has been positively received, with Greaves Cotton’s stock rallying over 2% in early trading. The move is expected to unlock value for Greaves Cotton and its shareholders, strengthening its position in the EV sector.
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