Greaves Cotton share price surged nearly 10% on Tuesday's session, following the company's announcement that its material subsidiary, Greaves Electric Mobility Limited, submitted a Draft Red Herring Prospectus (DRHP) dated December 23, 2024, to the Securities and Exchange Board of India (SEBI), BSE , and the NSE for an initial public offering (IPO) worth ₹1,000 crore.
“We wish to inform you that Greaves Electric Mobility Limited has filed the DRHP dated December 23,2024 with the SEBI, BSE, and NSE in connection with the initial public offering of equity shares of face value of Re 1 each comprising a fresh issue of such number of Equity Shares aggregating up to ~ 10,000 million and an offer for sale of up to 51,000,000 Equity Shares by Greaves Cotton Limited and up to 138,398,200 Equity Shares by Abdul Latif Jameel Green Mobility Solutions DMCC,” the company said in an exchange filing.
The firm intends to use the net proceeds from the fresh issue to support various objectives, including investment in product and technology advancement; upgrading the capabilities at our Technology Centre located in Bengaluru, Karnataka; establishing in-house battery assembly capabilities within our company; financing the expansion of manufacturing capacity; increasing our stake in MLR through acquisitions; enhancing digitization and the implementation of IT infrastructure; funding growth through undisclosed acquisitions, along with general corporate purposes.
Greaves Cotton share price opened at ₹236.80 apiece, on the BSE. The stock touched an intraday high of ₹256.30 per share, and an intraday low of ₹229.70 apiece. According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, Greaves Cotton share prices are in a strong uptrend and recently there was a strong surge during the November month moving from the levels of 160 to 260.
“Last couple of session were more of correction, but prices seems to have resumed uptrend in today's session up more than 8% forming higher bottom on 20ema, 230 seems a strong support whereas on the upside the prices may extend towards 280. Traders can maintain positive bias with any dip as an opportunity,” added Bhosale.
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