L.G. Balakrishnan & Bros. to invest ₹12 cr. in Greenerg • EVreporter

On August 5, 2024, the Board of L.G. Balakrishnan & Bros Limited approved a strategic investment in Greenerg Mobility Solutions, a Coimbatore-based startup specializing in EV components like telematics, BMS, VCU, BLDC motors, and motor controllers in accordance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The investment includes acquiring a 14.92% equity stake and subscribing to Secured Optionally Convertible Debentures with a total consideration of up to ₹12 crore. This decision aligns with the company’s strategy to expand its portfolio in the electric mobility sector.

Investment Details:

• Equity Subscription: The company will invest in equity shares of Greenerg Mobility Solutions Private Limited, acquiring a 14.92% stake in the post-investment paid-up share capital. This will be done by subscribing to equity shares with a face value of ₹10 each. The total consideration for this investment is capped at ₹6 crore, inclusive of the share premium.

• Debenture Subscription: Alongside equity investment, the Board also approved the subscription to Secured Optionally Convertible Debentures (SOCDs) worth up to ₹6 crore, to be acquired in one or more tranches.

• Legal Agreements: The company will enter into a Share Subscription and Shareholders Agreement (SSHA) and a Debenture Subscription Agreement (DSA) to govern the rights, obligations, and management of the Investee Company.

The acquisition is not a related party transaction, with no involvement from promoters or group companies, and will be conducted at arm’s length. The cash investment will be made at ₹950 per security for both equity shares and debentures, based on a valuation by a Registered Valuer. The equity investment is expected to be completed by August 2024, while the debenture subscription is anticipated to be finalized by January 2025, in one or more tranches.

The company has demonstrated significant revenue growth, with turnover increasing from ₹2.22 lakh in FY 2020-2021 to ₹11.22 crore in FY 2022-2023.

The investment in Greenerg Mobility Solutions Private Limited supports the company’s goal to enhance its capabilities in the EV industry and establish a presence in the development of essential EV components, contributing to the growth and adoption of electric vehicles in India.

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