4:1 Bonus Share & 10:1 Stock Split: Electrical product manufacturer acquiring a strategic stake in a high-end DC Fast Charging technology company - UltraFast Chargers (P) Ltd
The stock gave multibagger returns of 300 per cent in 3 months, 800 per cent in 1 year and a whopping 3,040 per cent in 3 years.
On Wednesday, shares of Kaycee Industries Ltd were locked in a 2 per cent upper circuit to Rs 2,110.40 per share from its previous closing of Rs 2,069.05. The stock also made a fresh 52-week high of Rs 2,110.40 per share and its 52-week low is Rs 208 per share.
Kaycee Industries Ltd, a prominent subsidiary of Salzer Electronics Ltd, is set to make a strategic investment in UltraFast Chargers (P) Ltd (UFC). With over three decades of pioneering electrical solutions, Salzer has positioned itself as a leader in the industry. By acquiring a 30% stake in UFC, Kaycee will become the largest shareholder in the company. UFC specializes in high-end DC Fast Chargers, characterized by their speed, safety, and reliability. These chargers, built on proprietary technology, are already being used by multiple charge point operators across India. Notably, UFC's chargers can adapt to various vehicle types, from cars to buses and trucks, with varying power requirements, and can efficiently charge multiple vehicles simultaneously. The company is also developing advanced liquid-cooled chargers with minimal maintenance needs.
This acquisition underscores Kaycee and Salzer's commitment to emerging electrical technologies and solidifies their position as a leading South Asian player in this domain. The deal is expected to be finalized before September 30, 2024. Singhi Advisors, a Mumbai-based investment banking firm specializing in domestic and international mergers and acquisitions, acted as the exclusive advisor to Kaycee on this transaction. Interestingly, Singhi Advisors has a history of advising on previous deals involving Kaycee and Salzer, having facilitated Salzer's acquisition of Kaycee from CMS in 2019 and CMS's acquisition of Kaycee from Bajaj Electricals in 2002.
Through this investment, Kaycee and Salzer aim to strengthen their foothold in the rapidly growing electric vehicle charging market. By partnering with UFC, they gain access to cutting-edge charging technology, which complements their existing expertise in electrical solutions. This strategic move positions the companies as key players in India's transition to sustainable mobility.
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About the Company
Founded in 1942, Kaycee Industries Ltd, a subsidiary of Salzer Electronics Ltd, manufactures and supplies industrial electrical switches, mechanical counters, hour meters, cable lugs, and various other electrical components to diverse sectors like power, telecom, and renewables. Their product range includes rotary switches, toggle switches, stroke counters, digital time totalizers, and more, with a manufacturing capacity of 500 tons per month. They boast a prestigious clientele including the Airport Authority of India, Indian Oil, Airtel, and ABB.
The company has executed a 4-for-1 bonus share issue and a 10-for-1 stock split. Additionally, a total dividend of Rs 100 per share has been declared, consisting of a normal final dividend of Rs 60 and a special dividend of Rs 40. Shareholders of record on July 5, 2024, will be eligible for the bonus shares and stock split, while those holding shares on August 9, 2024, will receive the dividend.
According to Quarterly Results, the net sales increased by 20 per cent to Rs 13.47 crore and net profit increased by 77 per cent to Rs 1.57 crore in Q4FY24 compared to Q4FY23. In its annual results, the net sales increased by 17 per cent to Rs 48.81 crore and net profit increased by 29 per cent to Rs 4.49 crore in FY24 compared to FY23.
The company has a market cap of Rs 670 crore with a 3-year stock price CAGR of 200 per cent. The stock gave multibagger returns of 300 per cent in 3 months, 800 per cent in 1 year and a whopping 3,040 per cent in 3 years.
Disclaimer: The article is for informational purposes only and not investment advice.
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