Greaves Cotton is a newsmaker today, going strong on the bourses. Opening 10.5% higher at Rs.179, the stock surged further by 13.5% to an intraday high at Rs.183.90. Its 52-week high is at Rs.194.10.
The company, today morning, announced a strategic investment by Saudi Arabia based, Abdul Latif Jameel in its electric vehicle (EV) arm, Greaves Electric Mobility (GEM).
GEM already sells electric 2 and 3-wheelers. It sells EV 2-wheelers under the brand name of Ampere and in 3-wheelers, its ELE (e-rickshaw) and Teja (e-autos).
Abdul Latif Jameel is an independent, family-owned, diversified global investor and operator and the promoter of this investor, the Jameel Family, is also the third largest shareholder in US EV maker, Rivian.
For a 3.58% stake in the company, Abdul Latif Jameel will make an initial investment of Rs.1,160 crore ($150 million). There is an option with GEM to draw down additional investment of US$ 70 million within 12 months.
Pursuant to the consummation of the Proposed Investment, the Greaves Cotton will have a shareholding of 61.38% on a fully diluted basis in GEM, which means it will continue to remain a subsidiary.