Greaves Cotton Shares Block Deal: Vijay Kedia Buys 0.52% Stake

On Tuesday, December 10, 2024, Greaves Cotton shares rose as much as ~8% in the morning trade and touched the day high of ₹232.05. The significant surge follows the acquisition of shares by renowned investor Vijay Kedia of 12 lakh shares of Greaves Cotton, representing a 0.52% equity stake in the company. Through his firm, Kedia Securities, he purchased shares worth ₹25 crore at an average price of ₹208.87 per share.

As per reports, several fund houses, including Dimensional Fund Advisors, Sundaram Asset Management Company, and Motilal Oswal Asset Management, also bought shares in Greaves Cotton during the December quarter, signalling growing institutional interest in the company.

Strategic Acquisition Ahead of Greaves Electric Mobility IPO

Kedia’s acquisition of Greaves Cotton shares coincides with the company’s plans for the proposed listing of its electric vehicle unit. In early December, Greaves Cotton’s board approved the Initial Public Offering (IPO) of its subsidiary, Greaves Electric Mobility Ltd (GEML). The IPO will consist of both a fresh issue of equity shares and an offer for sale by existing shareholders, potentially boosting the company’s market position.

Greaves Electric Mobility Ltd (GEML), despite facing stiff competition from established players in the electric vehicle industry, is expected to experience revenue growth of 7% in FY25 and 14% in FY26, according to projections. This indicates a positive outlook for the company’s future performance in the growing EV market.

Financial Performance of Greaves Cotton

Greaves Cotton reported a net loss of ₹135.3 crore in FY24, compared to a profit of ₹78 crore in FY23. The company’s net revenue also declined by 2.5%, amounting to ₹2,633 crore for the year. However, it managed to report a net profit of ₹13.5 crore for the first half of FY25, signalling a potential recovery.

About Greaves Cotton Limited

Greaves Cotton is a diversified company involved in manufacturing a wide range of products, including internal combustion engines, power generation equipment, and power transmission systems. Additionally, it produces mining, oilfield, construction, and materials handling equipment, along with integrated systems and electronics. The company also manufactures three-wheeler autorickshaws, polymers, and resins.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.