Greaves Cotton to acquire Ampere Vehicles, stock hit at 52 week high

Greaves Cotton informed the bourses that its board of directors have approved the proposal of investment in Ampere Vehicles Private Limited, on Wednesday. The company is involved in design, development, manufacturing and marketing battery-operated electric vehicles which include electric cycles, electric two-wheeler, electric three-wheeler and custom-built electric vehicles. The company’s FY18 revenue was at Rs. 18.5 crore and during April to July 2019 period the company recorded revenue of Rs. 16 crore.

In the first phase, the company will invest Rs. 77 crore for 67 per cent stake in Ampere Vehicles. Further, in the second phase, the company can acquire another 13 per cent stake at its discretion over the next three years.

This acquisition was in line to accelerate development of clean energy technology solutions for last mile mobility and address a wider range of customer segments with clean energy mobility solutions.

With this positive development, the stock of Greaves Cotton in Thursday’s trading session hit 52-week high of Rs. 164.55. At 13.08 hours the stock of Greaves Cotton was trading at Rs. 158.2 apiece, up by almost 7.9 per cent from its previous close.