13 May 2025
Greaves Cotton Supports GEML with a Big Financial Move
Greaves Cotton Limited has provided a ₹40 crore corporate guarantee to help its key subsidiary, Greaves Electric Mobility Limited (GEML), get a loan from Tata Capital. This support shows how Greaves Cotton is standing strong behind its electric mobility business.
Details of the Loan and Guarantee
Greaves Electric Mobility Limited, also known as GEML, has taken a term loan from Tata Capital for two years. To help secure this loan, Greaves Cotton issued a guarantee worth ₹40 crore. This means that if GEML fails to repay the loan, Greaves Cotton will take responsibility for the payment.
According to the company’s stock exchange filing, this deal follows all the rules under SEBI’s Listing Regulations. The transaction has been made fairly, and there is no involvement or interest from the promoter group.
No Immediate Impact on Greaves Cotton
As per the company, there is no direct impact on Greaves Cotton at this moment. The guarantee will only matter if GEML cannot repay the loan. In such a case, Greaves Cotton may have to step in and repay it. For now, this ₹40 crore guarantee is just a part of the company’s contingent liabilities.
Greaves Cotton's Journey Towards E-Mobility
Greaves Cotton is an old and trusted engineering company. It started with diesel engines but has now moved into many areas like commercial vehicles, electric vehicles, retail, and finance.
In recent years, the company has focused more on green mobility solutions. This latest step once again shows its deep commitment to electric vehicles and a cleaner future.
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