Auto components stock under Rs 30 and Promoters & FIIs increase stake: Board allots 12,98,000 equity shares on conversion of warrants to non-promoter!

The stock is up by 74 per cent from its 52-week low of Rs 16.11 per share.

Pritika Auto Industries Ltd, established in 1980, is a leading manufacturer of tractor and automobile components within the Pritika Group of Industries. They specialize in machined castings and a wide range of parts for tractors and commercial vehicles, making them a one-stop shop for various automotive and engineering needs.

Today, shares of Pritika Auto Industries Ltd plunged 2.77 per cent to Rs 28.05 per share from its previous closing of Rs 28.85 with an intraday high of Rs 29.56 and an intraday low of Rs 27.90. The 52-week high of the stock is Rs 54.33 and the 52-week low of Rs 16.11. 

According to Quarterly Results, the company reported a total income of Rs 82.58 crore and a net profit of Rs 2.59 crore in Q4FY24 while in Q4FY23 the company reported a total income of Rs 88.63 crore and a net profit of Rs 2.70 crore. Similarly, in its annual results, the company reported a total income of Rs 343.71 crore and a net profit of Rs 16.85 crore in FY24 while in FY23 the company reported a total income of Rs 363.24 crore and a net profit of Rs 15.69 crore.

Also Read: 1:1 Bonus Share: LIC-backed multibagger penny stock at Rs 3.65 – Company bags order worth Rs 14.25 million from ITC Ltd

The Board of Directors approved the conversion of 12,98,000 warrants into the same number of equity shares with a face value of Rs 2 each. The conversion price was Rs 18 per share (including a premium of Rs 17), with the remaining balance of Rs 14.25 per warrant (75 per cent of the issue price) being received from the allottee, Sneha Sadhwani. This resulted in a total payment of Rs 1,84,96,500. These warrants were previously allotted preferentially to the non-promoter/public category at an issue price of Rs 19 per warrant, with an initial payment of Rs 4.75 (25 per cent of the issue price). There are still 48,25,000 outstanding warrants that can be converted into equity shares by paying the remaining Rs 14.25 per warrant within 18 months of allotment. Following this conversion, the company's issued and paid-up capital increased to Rs 32,33,75,334, consisting of 16,16,87,667 equity shares. The newly allotted shares have the same rights as the existing ones.

The company has a market cap of Rs 450 crore. The promoters of the company increased their stake to 65.80 per cent and FIIs increased their stake to 4.12 per cent in March 2024 compared to 48.54 per cent and 1.55 per cent, respectively in March 2023. The stock is up by 74 per cent from its 52-week low of Rs 16.11 per share.

Disclaimer: The article is for informational purposes only and not investment advice.