Greaves Electric Mobility invests Rs 55 crore in MLR Auto
By HDFC Sky | Published at: Jun 20, 2025 10:47 AM IST
Mumbai, June 20 — Greaves Cotton Ltd (NSE: GREAVESCOT, BSE: 501455) today announced that its material subsidiary, Greaves Electric Mobility Ltd (GEML), has made a strategic investment of ₹55 crore in MLR Auto Ltd. This investment was executed through a rights issue, and due to non-participation by other shareholders, GEML’s ownership stake in MLR Auto has increased from 51% to 67.41%.
GEML’s increased stake strengthens its control in MLR, which manufactures diesel, petrol, CNG, and electric 3-wheeler (L5 category) vehicles, catering to India’s growing last-mile mobility market. The investment was made via subscription to ordinary equity shares of ₹10 each at par, and the transaction was completed on June 19, 2025.
Investment Details
| Parameter | Details |
|---|---|
| Amount Invested | ₹55 crore |
| Mode of Investment | Cash, Rights Issue (at par) |
| Face Value per Share | ₹10 |
| Purpose | Loan repayment (excluding GEML debt) |
| Regulatory Approval Required | Not applicable |
| SEBI Clause | Reg 30 & SEBI Circular dated Nov 11, 2024 |
Shareholding Comparison
| Shareholder | Before | After |
|---|---|---|
| GEML (Greaves Subsidiary) | 51.00% | 67.41% |
| Others | 49.00% | 32.59% |
Turnover History
| Financial Year | Revenue (₹ Cr) |
|---|---|
| FY25 | ₹142.28 |
| FY24 | ₹86.23 |
| FY23 | ₹44.44 |
The company operates solely in India and is well-positioned to benefit from the growing demand for eco-friendly and efficient transportation solutions, particularly in the commercial sector.
MLR Auto: Business Snapshot
MLR Auto Ltd, incorporated on February 16, 2009, specialises in the design, manufacture, and sale of three-wheeled vehicles (diesel, petrol, CNG, and electric). It is classified under the L5 category according to the Automotive Research Association of India (ARAI) standards.
Share Price Effect
The shares of Greaves Cotton Ltd, the parent company of GEML, were trading at ₹194.81, up by ₹1.44, or 0.74%, at around 9:55 AM. Since GEML is a subsidiary, its shares are not listed on the stock exchanges.
Strategic Rationale Behind The Move
The move consolidates GEML’s position in the last-mile mobility market, aligning with Greaves Cotton’s long-term vision of building a vertically integrated electric mobility ecosystem. The funds will be primarily used to repay existing debt (excluding loans from GEML), improving MLR’s balance sheet and operational flexibility.
About the Company
Greaves Cotton Ltd is a publicly listed diversified engineering company with interests spanning e-mobility, powertrain solutions, aftermarket services, and retail finance. Its subsidiary, GEML, leads the company’s electric mobility vertical, while MLR Auto bolsters its manufacturing strength in the 3-wheeler space. Greaves is listed on NSE and BSE under the ticker GREAVESCOT.
REF: https://nsearchives.nseindia.com/corporate/GREAVESCOT_19062025231932_SE_Intimation_-_Investment_in_MLR_by_GEML_19062025_signed.pdf
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