Greaves Cotton share price experienced a sharp 10% increase during Tuesday’s session after its subsidiary, Greaves Electric Mobility Limited, filed a Draft Red Herring Prospectus (DRHP) on December 23, 2024. This marks a significant milestone for the company, with the IPO set to raise ₹1,000 crore.
The funds raised will be directed toward technology upgrades, product development, and capacity expansion. Greaves Electric Mobility also aims to establish in-house battery assembly capabilities, upgrade its Bengaluru Technology Centre, and explore undisclosed acquisitions.
Key Data
| Metric | Details |
|---|---|
| IPO Size | ₹1,000 crore |
| DRHP Filing Date | December 23, 2024 |
| Intraday High (Dec 24, 2024) | ₹256.30 |
| Intraday Low (Dec 24, 2024) | ₹229.70 |
| Support Level | ₹230 |
| Target Price | ₹280 |
| Stock Movement (Nov-Dec 2024) | ₹160 to ₹260 |
Analyst Insights
According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, Greaves Cotton is in a robust uptrend. The recent correction in share prices has been short-lived, with the stock showing resilience above the 20-EMA level.
Key Technical Observations:
- Strong support at ₹230.
- Potential upside to ₹280.
- Dips should be viewed as buying opportunities.
Strategic Objectives of the IPO
The proceeds from the fresh issue are planned for:
- Advancing product and technology.
- Expanding manufacturing capacity.
- Setting up in-house battery assembly units.
- Upgrading the Bengaluru Technology Centre.
- Boosting digitization and IT infrastructure.
- Acquiring a larger stake in MLR.
- Funding strategic acquisitions and corporate expenses.
Market Outlook
The IPO filing aligns with Greaves Cotton’s strategic push to expand its presence in the electric mobility market. This move is expected to solidify its market position and accelerate growth in the renewable energy and EV sectors.
Disclaimer
The information provided is for educational and informational purposes only and should not be considered financial advice. Consult with a qualified financial advisor before making investment decisions.
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