The Offer for Sale (OFS) component of the Initial Public Offer (IPO) for Greaves Electric Mobility (GEML), the company’s electric vehicle division, was approved by the board of directors on Wednesday, December 11, causing Greaves Cotton shares to drop 2.2% to their day’s low of Rs 248.20 on the BSE.
Although the OFS approval has been completed, the corporation has not revealed the precise number of shares that will be offered for sale. Applicable laws, market conditions, required permits, regulatory clearances, and other variables will all play a role in the final decision, Greaves Cotton said.
Greaves Cotton will continue to have a sizable stake in the firm after the IPO, but whether GEML will stay a subsidiary depends on the size of the IPO and the final amount of the OFS component.
According to the corporate statement, the anticipated IPO price and other specifics would be decided later.
Greaves Cotton authorized the IPO of its Electric Mobility division at the beginning of this month.
This week, the stock also garnered attention after seasoned Dalal Street investor Vijay Kedia purchased a 0.5% interest in the business.
At Bauma CONEXPO India 2024 on Wednesday, the company also unveiled a new line of electrified light construction equipment. To provide zero-emission solutions, the new equipment line incorporates electrification technology.
As to Trendlyne statistics, the average target price of the stock is Rs 155, which indicates a downside of 39% from the current market values. ‘Hold’ is the consensus recommendation of two analysts on the stock.
The relative strength index (RSI) for the stock is currently at 82.4 on a technical level. Trendline states that an RSI above 80 indicates that the market is seriously overbought. This suggests a potential pullback in the stock. Furthermore, a bullish indicator, the MACD is at 5.8, above both its center and signal line.
While the benchmark Sensex finished Wednesday flat, Greaves Cotton closed at Rs 253.9, up 0.7% on the BSE. The company’s market value is currently at Rs 5,902 crore after the stock has risen 83% over the last two years and 62% so far in 2024.
