Greaves Cottons unit Ampere Electric acquires stake in MLR Auto

Greaves Cotton said that Ampere Vehicle, a wholly-owned subsidiary of the company, will acquire 26% stake in MLR Auto, a manufacturer of electric three-wheelers (3W), for Rs 18.81 crore.

Aug 16, 2021 09:08 IST capital market

MLR Auto, established in February 2009, is in the business that includes design, development, manufacture, marketing, and sale of L5 three-wheelers as described by the standards prescribed by Automotive Research Association of India. The company reported a turnover of Rs 14.34 crore for FY20.

For the initial acquisition, Ampere Vehicle will acquire 26% stake in MLR through primary subscription, subject to completion of customary conditions and closing obligations, for consideration of Rs 18,81,20,230. The company will have the right (not an obligation) to increase its shareholding by another 25% (fully diluted basis) within a period of 12 months from the date of closing of the initial acquisition of 26%.

BVR Subbu, chairman of Ampere Electric, observed, ?Our market research and analysis suggest that in the top ten urban 3W markets, passenger vehicles will shift rapidly to EVs and by 2024, 100% of the segment will be electric. This comes from an overwhelming consumer preference for quieter emission free vehicles as consumer habits evolve, particularly those relating to the mobile consumption of data and entertainment. At Ampere, we are getting ready to participate in this high growth segment with a range of affordable and reliable products.?

Nagesh A Basavanhalli, MD and Group CEO of Greaves Cotton and director of Ampere Electric, mentioned, ?With this strategic stake in MLR Auto, Ampere Electric gets ready to operate as full range last mile electric vehicle company with mass mobility solutions in both E-2W & E-3W segment. Our commitment to grow the clean last mile with wide variety of consumer-friendly solutions continues to gather momentum.?

The scrip rose 0.28% to currently trade at Rs 144.25 on the BSE.

Ampere Electric backed by Greaves has been one of fast-growing brands with comprehensive EV ecosystem support developed to cater the growing needs of discerning EV buyers. Besides energy efficient products, the company has invested in complete aftermarket support, retail financing solutions with tie-ups from various partners.

Greaves Cotton is a diversified engineering company and a leading manufacturer of cleantech powertrain solutions, auxiliary power solutions, light equipment, e-mobility, aftermarket, retail and financing solutions.

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