Greaves Cotton continues to remain hot. The stock even today is among the top gainers on the BSE, hitting a new high today at Rs.165, with volumes spiking up 1.5 times.
The stock is in the buy list of various brokerage houses after it announced last week it deal with Ampere Vehicles, where it acquired a majority stake. Ampere is into the design, development and manufacture of electric cycles, bikes, three-wheelers and customised vehicles. This deal comes at a very opportune time, especially given the high-intensity interest around the need to curb pollution and go for electric vehicles, which in likelihood will the future of transportation across the world.
Greaves Cotton will initially acquire 67% of Coimbatore-based Ampere for Rs 77 crore. It may buy another 13% for Rs 75.5 crore after three years.
Greaves makes generator sets and engines for three-wheelers and small trucks. This is a win-win for both as Greaves will get access to clean energy technology and Ampere will get reach into India through Greave Cotton’s distribution and service network.