Vijay Kedia sold 1,25,000 shares and Dolly Khanna sold 1,41,884 shares of this multibagger auto stock after stock split; do you own it?

The stock gave multibagger returns of 180 per cent returns in just 1 year and a whopping 800 per cent in 3 years.

On Tuesday, the benchmark indices ended the day in green with the BSE Sensex Index up 0.04 per cent and the NSE Nifty-50 Index up by 0.15 per cent. On the broader front, the BSE Mid-Cap Index up 0.07 per cent and the BSE Small-Cap Index up 0.37 per cent.  

A multibagger auto stock stole the show in a green market, surging 2.94 per cent to an intraday high of Rs 304.85 before closing flat at Rs 296.15 despite a whopping 2.69 times volume increase on BSE.

The stock name is TALBROS AUTOMOTIVE COMPONENTS LTD.

Talbros Automotive Components Ltd manufactures gaskets, forgings, chassis systems, anti-vibration components and hoses for the Indian and International Automotive Industry. The Company has several joint ventures and technical agreements with international auto component players. The company has a market cap of over Rs 1,800 crore and has delivered good profit growth of 21.8 per cent CAGR over the last 5 years.  

In a recent development, the Board of Directors for the high-performing company endorsed a stock split, wherein each original equity share, valued at Rs 10, underwent sub-division into 5 new equity shares, each with a face value of Rs 2. The stock split took effect on Friday, October 27, 2023. Following this corporate decision, Dolly Khanna holds a combined total of 9,66,075 shares, equivalent to a 1.57 per cent stake, while Vijay Kedia possesses a total of 7,50,000 shares, representing a 1.22 per cent stake in the company.

Following the stock split, Dolly Khanna divested a portion of her total shares, selling 1,41,884 shares, thereby reducing her stake in the company to 1.34 per cent. She now retains ownership of 8,24,191 shares. Similarly, Vijay Kedia, another accomplished investor, sold 1,25,000 shares, resulting in a decrease in his stake to 1.01 per cent, with his remaining ownership comprising 6,25,000 shares.

Additionally, Talbros Automotive Components Limited (TACL) has approved the divestment of its entire 40 per cent stake in the joint venture company Nippon Leakless Talbros. This move will result in Nippon Leakless owning 100 per cent of the company, with TACL expected to receive Rs 81.8 crore for the equity stake sale, valuing the JV company at Rs 204.5 crore. The transaction, slated for completion in Q4FY24, is contingent on certain conditions. TACL plans to utilize the proceeds for future capital expenditure and expansions. Established in 2005, the JV company manufactures gaskets for major 2-wheeler OEMs in India.

Additionally, TACL has secured new multi-year orders worth Rs 580 crore from domestic and overseas customers, spanning various business divisions, product segments, and joint ventures, to be executed over the next 5 years from FY25 onwards.

The stock gave multibagger returns of 180 per cent returns in just 1 year and a whopping 800 per cent in 3 years. Investors should keep an eye on this small-cap stock.

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