Olectra Greentech Makes Strategic Acquisition to Fulfill Major Electric Bus Order

Olectra Greentech Limited, a leading player in the electric vehicle (EV) segment, has taken a strategic step to secure its ability to fulfil a significant electric bus order. The company has acquired a 26% stake (2,600 equity shares of ₹10 each) in “EVEY TRANS (MAH) PRIVATE LIMITED”. This newly acquired entity will act as a Special Purpose Vehicle (SPV) dedicated to executing a contract for 2,400 electric buses with Brihan Mumbai Electric Supply & Transport Undertaking (BEST).

Aligning with Growth Strategy

This acquisition aligns perfectly with Olectra Greentech’s growth strategy in the electric bus market. By establishing a dedicated SPV, the company streamlines project execution and potentially optimises financing options for this large-scale contract. Owning a significant stake in EVEY TRANS also allows Olectra Greentech to maintain control over project management and ensure adherence to timelines and quality standards.

Focus on Electric Bus Leadership

The substantial order of 2,400 electric buses from BEST signifies a major win for Olectra Greentech and a testament to their expertise in the electric bus domain. Fulfilling this order will solidify their position as a leading manufacturer and supplier of electric buses in India, contributing significantly to the country’s electric vehicle adoption goals.

Financial Consideration

Olectra Greentech acquired the 26% stake in EVEY TRANS through a cash consideration of ₹26,000. This strategic investment positions the company to capitalise on a substantial contract opportunity while potentially creating a replicable model for future large-scale electric bus deployments.

Looking Ahead

The acquisition of EVEY TRANS demonstrates Olectra Greentech’s commitment to fulfilling the BEST electric bus order and capitalising on the burgeoning electric mobility market in India. As they move forward with this project, their success will be closely watched by the industry, potentially paving the way for further expansion and industry leadership in the electric bus segment.

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.