Saudi Arabian firm Abdul Latif Jameel International will invest in the firm’s electric vehicle (EV) arm, Greaves Electric Mobility (GEM), after the company announced that Greaves Cotton shares rose nearly 8% on the BSE in early deals on Thursday. increased by.
“Greaves Electric Mobility announces a strategic investment by Abdul Latif Jameel, an independent, family-owned, diversified global investor and operator. Abdul Latif Jameel has committed a total investment of US$220 million.” greaves cotton informed in an exchange filing.
The company has claimed that this is the largest single tranche growth capital investment in the Indian E2W/E3W sector. The initial investment will be $150 million ( 1,160 crore for a 35.8% stake in Greaves Electric Mobility on a fully diluted basis). The post money equity value for the EV subsidiary will be $419 million ( 3,238 crore).
“Proceeds from this investment will be used to develop new products, associated technologies, brand awareness, with the aim of transforming the company into a leading global brand. EV the creator. The investment is intended to support Greaves Electric Mobility as it transitions to the next phase of growth,” said Greaves Cotton.
By offering clean mobility options, Greaves Electric Mobility and Abdul Latif Jameel will help India achieve its objective of reducing carbon emissions by one billion tonnes by 2030.
The Boards of Directors of the respective companies have approved the transaction which is subject to legal, regulatory, contractual and customary approvals and fulfillment of the conditions set out in the agreements.
“This investment by Abdul Latif Jameel is an important step towards making truly clean, sustainable and affordable mobility solutions accessible to a broader customer base. With this investment, we will continue to deliver tangible value to our customers and shareholders alike,” said Nagesh Basavanahalli, MD and Group CEO, Greaves Cotton.
Greaves Electric Mobility manufactures electric two-wheelers under the brand name of Ampere Vehicles and three-wheeler vehicles (e-autos and e-rickshaws) under the Alli and Teja brands.