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Greaves Cotton share price : Greaves Cotton shares have given a massive 56% return in the last one month. Starting from Rs 187 per share on November 29, the stock hit an all-time high of Rs 293.03 per share in just 30 days. Today, Monday, Greaves Cotton made a gap-up opening at Rs 288.70, up from the previous close of ₹ 281.83. However, the stock lost its early gains due to profit booking and is trading 1.86% down at Rs 276.60.
Vijay Kedia's big investment in Greaves Cotton
Interestingly, renowned investor Vijay Kedia bought 12,00,000 shares of Greaves Cotton on December 9 through Kedia Securities Private Limited. Vijay Kedia bought these shares at an average price of ₹ 208.87 per share. As per today's high, Vijay Kedia's investment in Greaves Cotton is now worth ₹ 35 crore, giving him a profit of ₹ 10 crore.
Reasons for surge in Greaves Cotton shares
The surge in Greaves Cotton shares came after the company informed the exchanges on December 1 that its electric vehicle (EV) arm was planning to launch an IPO. Three weeks later, Greaves Electric Mobility Ltd (GEML), a subsidiary of Greaves Cotton, filed its draft red herring prospectus (DRHP) with market regulator Sebi and exchanges BSE and NSE, aiming to raise ₹1,000 crore.
Greaves Electric IPO Details : Greaves Electric Mobility IPO
The IPO will consist of an offering of fresh equity shares of ₹1,000 crore as well as an offer-for-sale (OFS) of 18.93 crore equity shares by Greaves Cotton Limited and Abdul Latif Jameel Green Mobility Solutions DMCC. Greaves Cotton Limited holds 62.48% stake in the company, while Abdul Latif Jameel Green Mobility Solutions DMCC holds 36.44%.
According to the DRHP, GEML may consider raising up to ₹200 crore for a pre-IPO placement, which will be done before filing the red herring prospectus. If this pre-IPO placement is done, this amount will be deducted from the offer of new equity shares.
