Vijay Kedia-backed small-cap stock makes Rs 19,99,98,560 investment in EV Subsidiary!
Notably, the stock has surged by an impressive 47.44 per cent over the last year.
What an impressive rebound we witnessed in today’s domestic market session, with the Nifty 50 hitting a fresh record high and closing within striking distance of the significant 22,500 mark. Leading the recovery were banking and IT stocks, with Kotak Bank, Axis Bank, and ICICI Bank collectively contributing nearly 48 points to the Nifty 50's overall gains.
Despite the broader market's bounce back from lower levels, the Small-Cap index took a steep plunge of nearly 2 per cent, while the Mid-Cap index slipped 0.52 per cent.
Against this backdrop, a notable development unfolded in small-cap stock Atul Auto Ltd. The company made a substantial investment of Rs. 19,99,98,560/- (Rupees Nineteen crore ninety-nine lakh ninety-eight thousand five hundred and sixty only) through a subscription in the equity share capital of its subsidiary, Atul Greentech Private Limited (hereinafter referred to as 'AGPL'), on a rights basis. These shares were allotted on March 06, 2024. This investment brings the company's total investment in AGPL to Rs. 29.99 crore, with the company now holding an 80 per cent stake in AGPL. Importantly, this acquisition did not alter the company's shareholding percentage in AGPL.
AGPL, a brainchild of Atul Auto, marks the culmination of a 30-year legacy as a leading three-wheeler manufacturer. The company aims to establish itself as a pioneer in green automotive technologies, introducing innovative mobility solutions essential for the real world, and playing a pivotal role in the widespread adoption of EVs.
The investment is a cash consideration, and Atul Auto Limited has acquired 2,63,156 equity shares of AGPL at a price of Rs. 760 per share (face value of Rs. 10 + premium of Rs. 750).
Now, here's an intriguing insight: veteran investor Vijay Kedia holds a substantial 18.20 per cent stake in the company, which equates to 50,50,505 shares. Additionally, Kedia Securities Pvt Ltd holds 2.71 per cent shares. Notably, the stock has surged by an impressive 47.44 per cent over the last year.
Disclaimer: The article is for informational purposes only and not investment advice.