Solar-wind power company acquired 75% equity shares of Aarsh Transformers Private Limited
The stock gave multibagger returns of 268 per cent from its 52-week low of Rs 227 per share.
Viviana Power Tech Limited, a solar-wind power company, announced its acquisition of 75 per cent equity shares in Aarsh Transformers Private Limited, making it the holding company. Aarsh Transformers (CIN: U27102GJ2023PTC141290), a transformer manufacturer incorporated in May 2023, will design, manufacture, and assemble power and distribution transformers, compact substations, and other electrical components for power generation, transmission, and distribution, including renewable energy systems. This acquisition aims to bolster Viviana's technical expertise and expand its client base. The ₹75,000 cash consideration acquired 7,500 equity shares (75%) at par (₹10 each). While the acquisition is a related party transaction due to common directors and promoters, it was conducted at arm's length. Aarsh Transformers' turnover for its first financial year (FY 2023-24) is nil.
Earlier, A subsidiary of Viviana Power Tech, Aarsh Transformers Private Limited, was awarded a contract of Rs. 2,36,76,700.00 by M.M. Brothers. In addition, the company has secured new orders totalling Rs. 1,06,47,35,474. This includes a contract of Rs. 74,12,96,345 from Paschim Gujarat Vij Company Limited and Dakshin Gujarat Vij Company Limited under the SI and KSY Schemes and a contract of Rs 32,34,39,129 from Madhya Gujarat Vij Company Limited under the SI Scheme. These orders demonstrate the company's strong market position and potential for growth.
About the Company
Viviana Power Tech Ltd is a prominent player in the realm of power transmission and distribution in India. Established in 2014, the company specializes in turnkey projects, encompassing supply, civil work, erection, testing, and commissioning of electrical systems. Their expertise extends across various segments, including high-tension transmission lines, substations, power distribution networks, and underground cable laying.
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With a strong track record of successful projects, VPTL has earned the trust of both government and private entities. They have executed projects worth over Rs. 140 crores in eight states across India, showcasing their capabilities in handling large-scale undertakings. The company's clientele includes renowned names such as GETCO (Gujarat Energy Transmission Corporation Limited), Power Development Department (Jammu & Kashmir Government), BHEL, Cleanmax Enviro Energy Solutions, Adani Group, Suzlon, Waaree Renewable Technologies, etc.
The company has a market cap of over Rs 600 crore with an order book of Rs 150 crore and debtor days have improved from 142 to 113 days. The shares of the company have an ROE of 36 per cent and an ROCE of 42 per cent. The stock gave multibagger returns of 268 per cent from its 52-week low of Rs 227 per share. Investors should keep an eye on this stock.
Disclaimer: The article is for informational purposes only and not investment advice.