Multibagger EV stock at Rs 94 in green as Board approved conversion of 30,00,000 warrants of FIIs into equal number of equity shares of the company!

From Rs 2 to Rs 94 per share, the stock delivered multibagger returns of 4,600 per cent in 3 years.

The Sub-Committee of the Board of Directors of SERVOTECH POWER SYSTEMS LIMITED met on April 8, 2024, to consider the conversion of 30,00,000 warrants into equity shares. Out of 89,00,000 total warrants allotted earlier, 30,00,000 warrants were converted into equity shares. These warrants were allotted to the non-promoters/public category at an issue price of Rs 83.40 each (including a premium of Rs 82.40 per share). The conversion resulted in an increase in the company's issued, subscribed and paid-up capital from Rs 21,69,04,290 to Rs 21,99,04,290.

Specifically, Minerva Ventures Fund and Forbes EMF converted 15,00,000 warrants each into equity shares, resulting in them holding 15,00,000 equity shares each post-conversion. The conversion amount received from these two allottees is Rs 18,76,50,000 (Rs 62.55 per warrant). There are still 59,00,000 warrants pending conversion and the warrant holders can convert them by paying Rs 62.55 per warrant within 18 months from the date of allotment.

Earlier, Servotech Power Systems Ltd. and electric vehicle powertrain specialist Electra EV joined forces to create a revolutionary, jointly-owned EV charger technology. This new system, for which patents are pending, allows fast DC charging of any GB/T Bharat DC 001 electric vehicle (typically operating on sub-200V DC platforms) by connecting them to the more common CCS2 charging network through a small additional adapter. This innovation addresses a key need identified by Electra EV in serving its customers and eliminates the requirement for expensive, duplicate charging infrastructure. By enabling seamless charging compatibility and reducing costs, this collaboration between Servotech and Electra paves the way for broader electric vehicle adoption in India and other countries using the GB/T Bharat DC 001 standard, benefiting both personal and commercial electric vehicle users.

Also Read: Understanding Cash Flow: Essential Types You Need to Know

About Servotech Power Systems Ltd

Servotech Power Systems, a leading company in electronics and EV charging, is leveraging its experience to build India's EV infrastructure. They offer various AC/DC chargers, are building a domestic manufacturing facility for crucial components, and recently secured a contract to construct 20 EV charging stations in Nashik, contributing to cleaner transportation and a stronger EV ecosystem in India.

Today, shares of Servotech Power Systems Ltd surged 2.80 per cent to an intraday high of Rs 94 per share from its previous closing of Rs 91.45. The 52-week high of the stock is Rs 108.70 and the 52-week low of Rs 21.78 with a market cap of Rs 1,985 crore. The promoters of the company bought 42,50,000 shares and increased their stake to 61.37 per cent in January 2024 compared to 60.60 per cent in December 2024. From Rs 2 to Rs 94 per share, the stock delivered multibagger returns of 4,600 per cent in 3 years. Investors should keep an eye on this multibagger EV stock.

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