PE Fund Investments
Greaves Electric Mobility attracts $220-M from Saudi firm Abdul Latif Jameel
Coimbatore-based Greaves Electric Mobility Pvt Ltd (GEMPL), a subsidiary of Mumbai-based publicly listed engineering firm Greaves Cotton Ltd, has attracted a commitment of USD 220 million (INR 1,700 crore) from Saudi Arabia-based investment and operating firm Abdul Latif Jameel. The deal envisages an initial investment of USD 150 million (INR 1,160 crore) for 68,35,450 equity shares or a 35.8% stake. GEMPL shall also have a right (but not an obligation) to “draw down†an additional USD 70 million within 12 months from the initial investment. Founded in 2008 as Ampere Vehicles Pvt Ltd, GEMPL manufactures electric two-wheelers under the brand name of Ampere Vehicles and three-wheeler vehicles (E-Auto and E-Rickshaw) under the brands Ele and Teja. With retail sales of over 62,000 vehicles for FY22 - a 128% increase from the previous year - GEMPL is projecting a USD 100 million annual revenue run rate. It claims to have over 1.5 lakh customers. GEMPL will use the investment to develop new products, associated technologies, brand building and enhance manufacturing capacity. Abdul Latif Jameel has been a distributor of Toyota products for over 65 years. The Jameel Family, who own Abdul Latif Jameel, are also early-stage investors and the third-largest shareholder of US electric vehicle manufacturer Rivian. The family has also invested in the venture-backed US aerospace company Joby Aviation (through their global investment arm JIMCO).
From the Venture Intelligence M&A Deals Database: Between Aug-2018 and Nov-2019, Greaves Cotton had acquired 100% stake in Hemalatha Annamalai-founded Ampere Vehicles - backed by Ratan Tata, Kris Gopalakrishnan and PE firm Forum Synergies - for about USD 25 million. (Subscribers to the database can login to view the valuation, deal structuring and other transaction details.)
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