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Tag: DRHP

  • Hero Motors Revs Up IPO Plans, Refiles Papers with Bigger Issue Size

    In order to earn INR 1,200 crore through an initial public offering (IPO), Hero Motors has resubmitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI), the market regulator.

     For both electric and non-electric powertrains, Hero Motors offers a broad range of solutions, including system-level powertrain design, prototype, validation, development, and delivery.

    It has a major first-mover advantage in this industry since it was one of the first Indian companies to take advantage of the worldwide e-bike powertrain market opportunity. The company operated six production facilities in Thailand, the United Kingdom, and India as of December 31, 2024.

    These facilities were positioned strategically to ensure cost-effectiveness and closeness to consumers.

    Recent Financial Outlook of Hero Motors

    Hero Motors earned INR 807.26 crore in the nine months before December 31, 2024, and its operational revenue increased from INR 914.19 crore in fiscal 2022 to INR 1,064.39 crore in fiscal 2024.

    Furthermore, with a compound annual growth rate (CAGR) of 22.08%, gross profit increased from INR 281.38 crore in fiscal 2022 to INR 419.37 crore in fiscal 2024, reaching INR 330.47 crore in the nine months that concluded on December 31, 2024.

    The profit after tax for the nine months ending December 31, 2024, was INR 22.39 crore, up from INR 17.04 crore in the fiscal year 2024.

    Planning for the IPO

    With a face value of INR 10, the initial public offering (IPO) consists of an offer for sale (OFS) by the promoters of up to INR 400 crore and a new issue of stocks worth up to INR 800 crore.

    O P Munjal Holdings shares valued at INR 390 crore and Bhagyoday Investments and Hero Cycles shares valued at INR 5 crore each are included in the OFS. The following is how the money received from the new share offering will be distributed: INR 285 crore will be used to pay back, prepay, or fully or partially redeem some of the company’s outstanding debts.

    Further, INR 237 crore will be used to finance potential acquisitions and other strategic projects. Lastly, INR 285 crore will be used for capital expenditures associated with buying equipment required to increase the capacity of the company’s facility in Gautam Buddha Nagar, Uttar Pradesh.

    The issue’s book-running lead managers are ICICI Securities Limited, DAM Capital Advisors Limited, and JM Financial Limited; the offer’s registrar is KFin Technologies Limited.

    In 2022, Hero Motors purchased a strategic interest in the British company Hewland from Hero International B.V., which had been connected to Hewland since 2017.

    In 2021, it formed a joint venture with Yamaha Motors Japan to produce electric motors under the “HYM” brand, and operations started in 2022. It also entered the micro-mobility electric drive unit (“EDU”) market in 2023 under the “ESYNC” brand.

  • Wakefit Rolls Out IPO Plans, Targets to Raise INR 468 Cr

    Wakefit Innovations Ltd, a home and furnishings company, has submitted preliminary documents to the Securities and Exchange Board (Sebi) requesting permission to acquire capital through an initial public offering (IPO).

    According to the draft red herring prospectus (DRHP) submitted on June 26, the planned IPO of the Bengaluru-based company consists of an offer for sale (OFS) of 5.84 crore equity shares by the selling shareholders, along with a fresh issue of equity shares totalling up to INR 468.2 crore.

    Nitika Goel, Peak XV Partners Investments VI, Redwood Trust, Verlinvest S.A., SAI Global India Fund I LLP, Investcorp Growth Equity Fund, Investcorp Growth Opportunity Fund, and Paramark KB Fund are among the selling shareholders as part of the OFS, along with the promoters Ankit Garg and Chaitanya Ramalingegowda.

    How Wakefit Plans to Utilise Proceeds?

    Wakefit plans to use the INR 82 crore proceeds from the new issue to open 117 new COCO Regular Stores and one COCO Jumbo Store; INR 15.4 crore to buy new machinery and equipment; and INR 145 crore to pay license fees and lease and sublease rent for already-existing stores.

    The remaining sum would be utilised for regular business operations. In addition, INR 108.4 crore will go towards marketing and advertising costs to raise brand awareness and visibility.

    Additionally, the business might think about doing a pre-IPO placement of up to INR 93.6 crore. By implementing such a placement, the size of the fresh issue will be reduced.

    Wakefit’s Products and Business Operations

    Founded in 2016, Wakefit is one of the newest domestic companies in India’s home and furniture industry. The company distributes a variety of mattresses, furniture, and furnishings through both internal and external channels, including a number of marketplaces like multi-branded stores and major e-commerce platforms.

    Its full-stack vertical integration allows it to manage all facets of business operations, from product conception, design, and engineering to manufacturing, distribution, and customer experience and engagement.

    Two of Wakefit’s five manufacturing facilities are located in Bengaluru, Karnataka; the other two are in Hosur, Tamil Nadu; and the fifth is in Sonipat, Haryana.

    Due to a robust IPO market and a resurgence of investor interest in tech equities, a number of technology businesses intend to go public in 2025.

    Lenskart, an eyeglasses startup, has contacted investment banks to present for the mandate for its possible initial public offering (IPO), which may raise $1 billion. Groww, a stock broker, had selected five investment banks for a $1 billion initial public offering.

    In the near future, startups like SoftBank-backed OfBusiness and contract maker Zetwek hope to raise $1 billion through initial public offerings (IPOs). Up to 25 firms hope to debut on the public market in 2025.

    This comprises companies that aim for $500 million initial public offerings (IPOs), such as edtech company PhysicsWallah, AI unicorn Fractal, construction materials portal Infra.market, and leader in rapid commerce Zepto.

    With solid institutional support and a broad range of digital payment and issuance tools designed for India’s quickly digitising commerce sector, Pine Labs’ initial public offering (IPO) is anticipated to be a notable fintech listing in 2025.

  • Pine Labs Seeks INR 2,600 Cr via IPO, Files DRHP Papers with SEBI

    According to people familiar with the situation, the fintech unicorn Pine Labs filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on June 26.

    According to a media report, the company intends to raise up to INR 2,600 crore ($304 million) through a new share offering, while current investors such as PayPal, Mastercard, Peak XV Partners, and Macritchie Investments will sell up to 14.78 crore (147.8 million) shares.

    The proceeds of the new issuance will be utilised to pay down debt and make investments in companies including Pine Payment Solutions Malaysia, Pine Labs UAE, and Qwikcilver Singapore, in accordance with the DRHP.

    Axis Capital, Morgan Stanley, Citi, J.P. Morgan, and Jefferies to Manage Offerings

    The business might potentially think about placing shares up to INR 520 crore before the IPO. Axis Capital, Morgan Stanley, Citi, J.P. Morgan, and Jefferies are managing the offering.

    This represents a significant departure from its previous discussions since last year, when Pine Labs was allegedly considering an IPO of $1 billion (INR 8,300 crore). Pine Labs, which was last valued at $5 billion when it raised money in 2022, was granted permission in April to relocate its headquarters from Singapore to India.

    The platform has been branching out into other industries, such as online payments (Fave), Buy Now Pay Later (BNPL), invoice management, and gifting solutions, enabling merchants to diversify revenue sources. Its primary focus is on offline payments through Point of Sale (PoS) terminals.

    Due to a robust IPO market and a resurgence of investor interest in tech equities, a number of technology businesses intend to go public in 2025.

    Lenskart, an eyeglasses startup, has contacted investment banks to present for the mandate for its possible initial public offering (IPO), which may raise $1 billion. Groww, a stock broker, had selected five investment banks for a $1 billion initial public offering.

    In the near future, startups like SoftBank-backed OfBusiness and contract maker Zetwek hope to raise $1 billion through initial public offerings (IPOs). Up to 25 firms hope to debut on the public market in 2025.

    This comprises companies that aim for $500 million initial public offerings (IPOs), such as edtech company PhysicsWallah, AI unicorn Fractal, construction materials portal Infra.market, and leader in rapid commerce Zepto.

    With solid institutional support and a broad range of digital payment and issuance tools designed for India’s quickly digitising commerce sector, Pine Labs’ initial public offering (IPO) is anticipated to be a notable fintech listing in 2025.

  • Lenskart Aims for the Spotlight: IPO DRHP Filing Expected in Early July

    In the first two weeks of July, the unicorn in the eyewear industry, Lenskart, will file DRHP for its IPO. It will opt for a public DRHP rather than the confidential DRHP route.

    Lenskart is choosing full public disclosure over the confidential IPO filing path with the Securities and Exchange Board of India (SEBI), which is what several of its competitors, such as Swiggy, Groww, Meesho, PhysicsWallah, and Boat, have chosen.

    The confidential route gives businesses flexibility and protection during the pre-IPO stage while preserving the privacy of sensitive business information during early regulatory examinations.

    A public file, on the other hand, instantly makes the DRHP available to the public, exposing all financial data, corporate specifics, and strategic intentions to inspection. Lenskart’s decision to be transparent points to a solid and planned business strategy.

    Massive IPO Plan Marking Lenskart’s Valuation at $10 Billion

    According to reports, Lenskart is getting ready for a big $1 billion IPO with a $10 billion valuation target. Its tremendous development and market leadership are reflected in this aim, which is almost twice its prior private market valuation.

    A group of top investment banks, including Kotak, Axis Capital, Citi, Morgan Stanley, and Avendus, have joined forces with Lenskart to oversee this massive IPO.

    The company’s confidence stems from its growing global footprint and its leading position in the Indian omnichannel eyewear market.

    Lenskart has a distinct competitive advantage because it presently has no direct competitors in the new economy sector, and Titan Eye Plus, its closest listed competitor, works on a much smaller scale.

    Financial Dynamics of Lenskart

    With a sales base of INR 5,427.7 crore, the company posted a loss of INR 10.15 crore in FY24. Despite being a loss, it greatly reduced losses by 84% when compared to FY23’s INR 63.7 crore, indicating a concentration on both expansion and strict financial control.

    An excellent measure of the company’s market penetration is the revenue growth of 43.2% in FY24 compared to FY23. The company has not yet released its financial results for FY25.

    Lenskart, which was founded by Peyush and Neha Bansal, Amit Chaudhary, Ramneek Khurana, and Sumeet Kapahi, has grown outside of India. Japan, Singapore, and the United Arab Emirates are among the important foreign markets in which it works.

    The business has made significant investments in international growth, including the purchase of the majority of the Japanese eyewear company OWNDAYS, which was estimated to be worth $400 million in 2023.

    With ambitions to create up to 400 new stores in Southeast Asian nations over the next two years, this calculated move intends to further establish the company as a global leader in eyeglasses.

    In Hyderabad, Telangana, Lenskart just started construction of the biggest eyewear facility in the world, which will serve both the domestic and international markets.

    ADIA, ChrysCapital, SoftBank, Alpha Wave, Temasek, and Fidelity are just a few of the well-known investors that have helped Lenskart collect more than $1 billion in capital to date, demonstrating their tremendous faith in the company’s business plan and future growth.

  • Capillary Technologies Secures Board Approval for INR 2250 Cr IPO Launch

    The board has given Capillary Technologies permission to raise INR 2,250 Cr, or about $263 million, through an initial public offering (IPO).

    In accordance with regulatory filings, the Warburg Pincus-backed business intends to raise INR 500 Cr through the issuing of new shares and will also have an offer for sale (OFS) component of INR 1,750 Cr, wherein some of its owners may dilute their shareholding.

    The plan to generate the aforementioned amounts through an initial public offering (IPO) was accepted by Capillary Technologies’ board on May 23. The choice must be approved by the company’s shareholders, though.

    In January, a media outlet revealed that Capillary Technologies intended to submit its draft red herring prospectus (DRHP) to SEBI, the market watchdog, by June in order to raise $200 million through an initial public offering (IPO).

    The Bengaluru-based company was aiming for a listing valuation of $500 million to $1 billion at the time, according to sources. It was not possible to determine the precise date of its mainboard listing.

    According to the company’s most recent regulatory statement, it might also think about raising more money in a pre-IPO deal.

    Second Attempt to go Public

    Capillary has already tried to list in India. The SaaS business first submitted a DRHP for an INR 850 Cr IPO in 2021, but it later abandoned the plans as the markets became unstable.

    Although the company has not yet released its FY25 financial results, according to records obtained from Tofler, its operating revenue increased by 80% year over year to INR 600 Cr in FY24, while its net loss decreased by 33% year over year to INR 59 Cr.

    At a time when over 20 cutting-edge digital businesses are getting ready to go public in 2025 due to high investor demand, Capillary has brought back its IPO ambitions. Shiprocket, PhysicsWallah, Groww, and boAt are among them; throughout the last few months, they have all submitted confidential IPO documents to SEBI.

    In the upcoming six months, it is anticipated that companies such as Urban Company, BlueStone, Avanse Financial Services, Smartworks, IndiQube, and ArisInfra would also go public. In addition, companies like OfBusiness, Pine Labs, Razorpay, PhonePe, and Lenskart are stepping up their preparations for possible initial public offerings.

    Capillary Technologies Operations and Clientele

    Capillary Technologies, which was founded in 2008 by Aneesh Reddy, Ajay Modani, and Krishna Mehra, offers software for client engagement and loyalty. Among its customers are Domino’s, Indigo, Tata Group, and Aditya Birla Group.

    Reddy is still the company’s top boss, even though Modani and Mehra have already left. Capillary asserts that it is present in foreign markets like the US, MENA, and Southeast Asia in addition to India. It closed its Series D financing at $140 million last year.

    About $95 million of its funding was made up of secondary deals, which allowed new investors to join the cap table while also providing partial exits to current investors and former workers.

    Among the well-known firms supporting Capillary are Qualcomm Ventures, American Express Ventures, Norwest Venture Partners, Avataar Ventures, Filter Capital, InnoVen Capital, and Peak XV Partners.

  • Tata Capital Submits DRHP for a Massive IPO of INR 15,000 Crore

    In preparation for the launch of its massive INR 15,000 crore Tata Capital IPO, the Tata Group has submitted draft documents to the Securities and Exchange Board of India, the capital market regulator. The conglomerate headed by N Chandrasekaran has reportedly submitted its paperwork to SEBI in preparation for its much-anticipated IPO, which is owned by Tata Sons and IFC. Tata Sons and IFC would sell their shares in the Tata Capital IPO, which would be an offer for sale (OFS), according to the draft paper. With the help of Kotak Mahindra Capital, Citi, JP Morgan, Axis Capital, ICICI Securities, HSBC Securities, IIFL Capital, BNP Paribas, SBI Capital, and HDFC Bank, Tata Sons submitted the draft documents via the confidential procedure. The draft papers have been submitted to the market regulator via private pre-filing process, according to a recent media report. A mix of main and secondary share offerings will be made; Tata Sons and investor IFC will split the shareholding, with the former contributing more.

    More Details of the IPO

    An news agency stated on March 9, 2025, that Tata Capital is expected to submit initial public offering (IPO) paperwork to markets regulator Sebi in order to raise $2 billion (more than 17,000 crore Indian rupees). Only after receiving final NCLT permission for the Tata Motors Finance merger with the company would this step be taken. According to this news outlet, Tata Capital’s initial public offering (IPO) would cost $11 billion. The National Company Law Tribunal (NCLT) is awaiting for the final decision, which should be closed by the end of this fiscal year (FY25). The Reserve Bank of India (RBI) has designated Tata Capital as an upper-layer non-banking finance company (NBFC), and the board has already given its permission for the inaugural share sale to be floated. The proposed IPO would include 2.3 crore equity shares through a new issue and an offer of sale (OFS) by some current owners, per a disclosure given to stock markets.

    Tata Capital Plans to Raise Funds

    In addition to the IPO, Tata Capital declared that it will further strengthen its financial position prior to the public listing by raising money through a rights issue. If successful, this would be one of the biggest initial share sales in the nation’s financial industry. Following the offering of Tata Technologies in November 2023, this would also be the second public market debut for the Tata Group in recent years. The corporation is making this move in an attempt to meet the RBI’s listing standards. Within three years of being classified as such, upper-layer NBFCs must list on the stock exchange in accordance with the RBI’s mandate. In September 2022, Tata Capital was classified as an upper-layer NBFC.

  • By June, Droom will Submit the Draft Documents for the INR 1,000 Cr IPO

    According to a media report, used automobile marketplace Droom plans to submit the draft documents for its INR 1,000 Cr (about $115 Mn) IPO by June of this year. Both a fresh issue and an offer for sale will be included in the IPO offer; the fresh issue will probably make up more than half of the offer. Droom has already selected two middle-market banks for the public offering and is aiming for an IPO valuation of between $1.2 billion and $1.5 billion. According to the report, it is also actively negotiating with another investment banker.

    By November of this year, the unicorn hopes to be listed on the exchanges. The fact that this will be Droom’s second effort to go public should be noted. To finance INR 3,000 Cr, the firm submitted its draft red herring prospectus (DRHP) to market watchdog SEBI in late 2021. However, because of the market’s volatility, it postponed its intentions for an IPO. The startup’s main motivation for lowering the size of its initial public offering (IPO) is that it doesn’t require a lot of funding at this time because it is anticipated to attain EBITDA profitability in the fiscal year 2025–2026 (FY26).

    Droom Eyes for INR 200Cr as Pre-IPO Round

    Droom also hopes to raise about INR 200 Cr (about $23 Mn) from both new and current investors in a pre-IPO transaction prior to filing the draft papers. “Droom wants to see more Indians control a larger share of the business. For this round, they want to reach out to Indian family offices, high-net-worth individuals, and top Indian stock market investors, according to a different source. In order to enhance domestic shareholding, Zepto raised $350 million from Motilal Oswal, HNIs, and family offices in a similar manner.

    Sandeep Aggarwal founded Droom in 2014, and it runs an online marketplace that links buyers and used car dealers. Early in 2022, it stopped selling low-cost vehicles, which accounted for 85% of company sales, and switched to offering luxury and mid- to high-end vehicles in order to boost its profit margin. This move has caused the startup’s margin on each auto sale to nearly quadruple from INR 40,000 to INR 1.6 lakh. Droom is expected to end FY25 with INR 250 Cr in sales.

    Other Services Provided by Droom

    In addition to selling automobiles, Droom also operates an advertising agency, a SaaS vertical, and a vehicle financing division. The firm also started offering car rentals earlier this month. To date, Droom has raised around $300 million in fundraising, with Lightbox, 57 Stars, and Seven Train Ventures among its supporters.

    Curefoods Begins Talks for $300–400 Million IPO
    Curefoods begins discussions with bankers for a $300–400 million IPO, signaling its readiness to enter public markets and expand its growth prospects.
    StartupTalkyNitin Konde

  • By Q1 FY25, Oyo Plans to Register for an IPO

    According to media citations, hospitality startup Oyo has begun preparing its draft red herring prospectus (DRHP), which would be its third attempt to go public, by the first quarter of the upcoming fiscal year. Ritesh Agarwal, the founder, is currently rearranging his shareholdings, which is connected to the upcoming IPO.

    According to media reports last week, Peak XV Partners has already sold shares worth $80-90 million, while early investors, Lightspeed Venture Partners and others, are seeking to sell their shares in the Gurgaon-based company. Agarwal has entered into debt finance agreements that include the IPO plans in order to execute a public offering this year. Media reports emphasised that Oyo’s goal is to file well before the conclusion of the first quarter.

    Agarwal, SoftBank group, and HNI are Expected to Retain Key Space

    In order to invest now and benefit from an IPO, the new investors—mostly family offices—are interested in the IPO link. Before the anticipated IPO filing, three significant shareholder groups—founder Agarwal, SoftBank Group, and HNI family offices—are anticipated to possess a significant portion of the company’s capital table, indicating a concentrated ownership structure.

    According to the most recent data on Tracxn, Agarwal and SoftBank share more than 75% of Oyo parent company Oravel Stays; however, the founder’s stake may increase further as a result of his new investment in the company, which he founded in 2012.

    According to an Oyo representative, the firm has not yet decided on the IPO’s timeline. Oyo is positioned alongside late-stage consumer internet companies like Zepto that are considering public markets this year as a result of the IPO rush. After the public markets embraced new-age companies in 2024, at least 20 startups are anticipated to enter the market this year.

    Oyo Making Significant Efforts to Launch IPO

    In January 2023, the stock market authority rejected Oyo’s initial 2021 effort to go public. After that, the business submitted a new application for a smaller initial public offering (IPO), but it withdrew it in May of last year and chose to raise money privately. At a valuation of $2.4 billion, it concluded a fundraising round of INR 1,457 crore. From a height of $9 billion in 2021 to the present $4 billion, the SoftBank-backed company’s valuation has been erratic, reflecting a resurgence in sustainable operations.

    Oyo’s biggest investor, SoftBank, had cut its valuation from $3.4 billion to $2.7 billion in 2022. Oyo’s updated confidential filing called for a 40–60% lower initial public offering (IPO), whereas its initial proposal was for a $1.2 billion (INR 8,430 crore) offering. Although specifics are still being completed, its most recent IPO is probably going to be less than $1 billion. However, at a valuation of about $4 billion, it is anticipated to fetch a higher price in the ongoing stake sale discussions. In the meantime, Oyo has become profitable, and its cash balance has strengthened thanks to recent fundraising.

    In FY24, Oyo reported its first-ever profit after taxes of INR 229 crore. In the first quarter of FY25, the company reported a profit of INR 132 crore. This performance has been fuelled by strategic investments in Europe as well as expansion in Southeast Asia, India, and the US.

    Cashfree and Razorpay Terminate Partnership with Juspay
    Cashfree and Razorpay end their collaboration with Juspay, marking a significant shift in their payment processing partnerships.
    StartupTalkyNitin Konde

  • IndiQube Submits DRHP for IPO of INR 850 Cr

    IndiQube Spaces, a managed office space provider, has submitted its DRHP for an INR 850 Cr initial public offering (IPO) to the Securities and Exchange Board of India (SEBI), the market watchdog. An offer for sale (OFS) of up to INR 100 Cr and a new issue of shares up to INR 750 Cr will be part of the company’s first public offering (IPO). Meghna Agarwal and Rishi Das, the cofounders and promoters, will sell off a portion of their shares through the OFS.

    The issue’s book running lead managers are JM Financial and ICICI Securities. Both the BSE and the NSE will list the company’s shares. From the net proceeds of the new issuance, IndiQube intends to use INR 462.6 Cr to open additional centres, INR 100 Cr to pay back some loans, and the rest sum for general business needs. From INR 198.11 Cr in the previous fiscal year to INR 341.51 Cr in FY24, the company’s net loss increased by 72%. Operational revenue for the reviewed fiscal year was INR 867.66 Cr, a 44% increase over FY23’s INR 601.28 Cr. Its operating revenue for the three months ending June 30, 2024 (Q1 FY25) was INR 251.30 Cr, while its loss after tax was INR 42.04 Cr. IndiQube reported in a statement that its EBITDA was INR 153 Cr in the first quarter of FY25 and INR 263.4 Cr in FY24.

    Focusing on ‘Office in a Box’ Concept

    IndiQube is a managed office space provider that was founded in 2015 and provides clients with a “office in a box” experience that includes workspace design, interior build-out, and a wide range of technology-enabled B2B and B2C services. Nearly three months have passed since a media report revealed that the Bengaluru-based business was in advanced talks to choose merchant bankers for its initial public offering. A resolution to rename the company from “IndiQube Spaces Private Limited” to “IndiQube Spaces Limited” was passed by the board of IndiQube in November. According to the company’s claims, as of June 30, 2024, it managed a portfolio of 103 locations spread over 13 cities, totalling 7.76 million square feet of area under management (AUM) in built-up area and 1.72 lakh seats.

    Third Coworking Space Segment Firm to Opt for IPO

    The clients of IndiQube include Myntra, upGrad, Zerodha, No Broker, Redbus, Juspay, Perfios, Moglix, and Ninjacart. WestBridge Capital, Ashish Gupta of Helion Ventures, and Aravali Investment Holdings support the brand. Interestingly, none of the current investors are selling shares through the OFS, with the exception of the cofounders.

    After Awfis went public in May of this year, IndiQube is now the third firm in the coworking space sector to file for an initial public offering (IPO). Although SEBI authorised Smartworks’ DRHP, it has not yet approved DevX’s IPO proposal. In addition, companies including Innov8, 91springboard, Spring House, Incuspaze, and COWRKS are aiming to go public shortly. These coworking space providers are growing as a result of rising office space costs and the rise in modern tech companies that require office space.

    Greaves Electric Mobility Files for INR 1,000 Cr IPO
    Greaves Electric Mobility has filed its DRHP with SEBI for a proposed IPO of INR 1,000 crore, aiming to strengthen its position in the EV market.
    StartupTalkyNitin Konde

  • Greaves Electric Mobility Submits a DRHP for an IPO of INR 1,000 Cr

    Greaves Electric Mobility (GEML), a manufacturer of electric vehicles (EVs), filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on December 23 to begin the process of becoming public. Parent company Greaves Cotton stated in a filing with the exchanges that the IPO will include an offer for sale (OFS) component of up to 18.93 Cr shares and a new issue of shares valued at INR 1,000 Cr. Abdul Latif Jameel Green Mobility Solutions will sell 13.83 Cr shares as part of the OFS, while promoter Greaves Cotton will sell 5.1 Cr shares.

    Both the BSE and the NSE will list the stock. “Ampere” is the brand name under which Greaves Electric sells electric scooters. Additionally, it produces three-wheelers under various trademarks. Through a secondary purchase in 2019, it acquired all of founder Hemalatha Annamalai’s shares, completing its takeover of the then-Ampere Vehicles. According to a media report, Greave Electric Mobility’s initial public offering (IPO) is expected to have a total value of approximately INR 1,000 Cr.

    How Company Plans to Utilise Proceeds?

    According to reports, the business intends to use INR 375.27 Cr to improve the tech skills at its Bengaluru technology centre and engage in product and technology development. The EV manufacturer will also invest INR 82.9 Cr to build internal battery assembly capabilities, and another INR 27.8 Cr will be used to further the company’s digitisation initiatives and implement IT infrastructure. Additionally, GEML intends to set aside INR 73.67 Cr to expand its ownership of MLR Auto, an EV brand and subsidiary. Additionally, INR 19.89 Cr and INR 38.26 Cr have been allocated for the expansion of the manufacturing capacity of its subsidiaries MLR Auto and Bestway Agencies, which manufacture e-rickshaws under the ELLE brand.

    A portion of the new money raised from the IPO will be used for general business needs and to finance inorganic development through strategic acquisitions. Greaves Electric Mobility is apparently considering financing a pre-IPO placement of up to INR 200 Cr prior to the public offering. According to the report, if a pre-IPO placement is made, the EV manufacturer may lower the amount of the new issuance. 

    Current Financial Dynamics of Greaves Electric

    Compared to INR 20 Cr in the previous year, Greaves Electric reportedly recorded a loss of INR 691.57 Cr in the fiscal year 2023–24 (FY24). In the meantime, operating revenue decreased to INR 611.81 Cr from INR 1,121.57 Cr in FY23. In the first half (H1) of FY25, the startup reported operational revenue of INR 302.23 Cr on a net loss of INR 106.15 Cr. Greaves Electric has been navigating challenging waters for the past two years, and now it intends to list on the stock exchanges. The EV manufacturer was convicted by the Ministry of Heavy Industries in 2022 of violating localisation requirements under the controversial Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME)-II program. The government then sent the EV manufacturer a recovery notice worth INR 125 Cr. Last year, the Ampere manufacturer finally made the payment.

    PhysicsWallah Goes Public Ahead of Its 2025 IPO Plans
    PhysicsWallah becomes a public company as it prepares for its 2025 IPO, marking a significant milestone for the EdTech unicorn. Learn more.
    StartupTalkyNitin Konde