Greaves Cotton Limited has announced that its board has approved an additional investment of around Rs 22 crore in its wholly owned subsidiary, Greaves Finance Limited (GFL). The investment will be made through subscription to equity shares offered on a rights basis.
GFL, incorporated in 1958, operates as a non-banking financial company (NBFC) focused on retail electric vehicle financing. It provides lending and lease financing solutions to customers purchasing electric two-wheelers and three-wheelers, as well as to last-mile delivery and service aggregators.
As of March 31, 2025, GFL reported a turnover of Rs 17.72 crore and a net worth of Rs 80.06 crore. The company’s revenue has shown steady growth over the past three years, rising from Rs 4.31 crore in FY23 to Rs 5.75 crore in FY24, and further to Rs 17.72 crore in FY25.
The proceeds from the rights issue will be used by GFL to capitalize its borrowings, strengthening its financial position as demand for EV financing continues to rise. Greaves Cotton clarified that the transaction qualifies as a related party transaction since GFL is a wholly owned subsidiary, but it will be conducted on an arm’s length basis.
The acquisition process is expected to be completed by September 28, 2025, and GFL will remain a 100% subsidiary of Greaves Cotton post-investment.
