Shares of Greaves Cotton, a manufacturer of engines and heavy equipment, have witnessed a strong rally in the last two sessions amid heavy volume following a deal with electric scooter manufacturer, Bounce Infinity. The share price surged 9% in intraday trade, while it climbed more than 18% over two sessions.
The company in a clarification to the exchange confirmed that it has entered into an arrangement with Bounce Infinity for providing battery swapping stations for Greaves electric vehicles. Battery swapping is the simple process of exchanging a discharged battery with a fully charged one.
“We would like to inform that the company and Bounce Infinity have entered into an arrangement, which is not a material arrangement, for providing battery swapping stations for electric vehicles,” Greaves Cotton clarified on media reports regarding the deal.
“The listed entities are mandated to disclose all events or information which are material for the listed entities. We therefore state that the discussion / arrangement for battery swapping stations is not material to the company as per Regulation 30 and Policy for Determination of Materiality of Events / Information of the Company. Thus, in view of the above submissions, we would like to reiterate that the aforesaid media report did not warrant a stock exchange intimation under Regulation 30 of the Listing Regulations,” it added.
As per media report, Bounce Infinity has collaborated with Greaves Retail, the retail business division from Greaves Cotton, to provide battery swapping stations for Greaves Electric Vehicles. The swapping stations will be initially established in Bengaluru and further expanded to other cities at a later stage. With an investment of $100 million, over the next 12 months, Bounce Infinity plans to set up swapping stations across India to fast-track EV adoption.
Greaves Cotton shares opened marginally higher at ₹177.90 against previous close price of ₹176.90 and rose as much as 9.01% to hit an intraday high of ₹192.85 on the BSE. At the time of reporting, the stock was up 6.1% at ₹187.70 apiece on the BSE. In contrast, the BSE benchmark Sensex was down 232 points, or 0.4%, at 57,631 levels. There was surge in volume trade as 4.75 lakh shares worth 8.83 crore changed hands over the counter as compared to the two-week average volume of 2.7 lakh scrip on the BSE.
With a market capitalisation of ₹4,345 crore, the smallcap stock touched a 52-week high of ₹258.85 on January 21, 2022, and a 52-week low of ₹116.90 on March 19, 2021. The share trades higher than 5-day, 20-day, 100-day, and 200-day moving averages but lower than 50-day average.
The share price of Greaves Cotton has gained 15% over a week, 6.5% in one month, and 35% since the beginning of the calendar year 2022. In the last one year, the stock rallied 42%, 36% over three years, and 14% during the five-year period.
