Multibagger EV-Stock Under Rs 100 Hit Upper Circuit After Executing Share Purchase Agreement with DC2 Mercury Cars Pvt Ltd
The shares of the company saw a spurt in volume by more than 3 times on BSE.
On Thursday, shares of Mercury EV-Tech Ltd hit a 5 per cent upper circuit to Rs 99.26 per share from its previous closing of Rs 94.54 per share. The stock’s 52-week high is Rs 139.20 per share and its 52-week low is Rs 64.32 per share. The stock is up by 54.3 per cent from its 52-week low of Rs 64.32 per share. The shares of the company saw a spurt in volume by more than 3 times on BSE.
Mercury EV Tech Limited ("Acquirer") has entered into a Share Purchase Agreement with DC2 Mercury Cars Private Limited (Target Company) and Anushree B. Chhabria (Seller) for the acquisition of equity shares. The target company currently has a paid-up capital of Rs 3,58,00,000 divided into 35,80,000 equity shares of Rs 10 each. The Seller holds 35,79,900 of these equity shares. Under the agreement, the Seller will sell 69.84 per cent of their shares, amounting to 25,00,000 equity shares, to the acquirer. The acquirer has agreed to purchase these shares at a consideration of Rs 10 per equity share, resulting in a total consideration of Rs 2,50,00,000. Upon this acquisition, the target company will become a subsidiary of the acquirer.
The target company, DC2 Mercury Cars Private Limited, specializes in designing passenger cars, sports cars and modifying existing vehicles. This acquisition is strategically important for Mercury EV-Tech Limited as it will leverage the expertise of Mr Dilip Chhabria, a renowned car designer and the Chief Designer at the Target Company. The collaboration under the "DC Mercury Cars" brand is expected to enhance the product acceptability of Mercury EV-Tech Limited in the market and drive significant business growth. Prior to its incorporation, it operated as a proprietorship firm owned by Mrs. Anushree Chhabria. The turnover of the proprietorship firm was Rs 2.76 crore in 2023-24 and Rs 3.36 crore from April 01, 2024, to November 30, 2024. The Acquirer will make a cash payment of Rs 2,50,00,000 to the Seller within 30 days of the agreement.
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Earlier, the company incorporated a new subsidiary, "GLOBAL MERCURY CONTAINER PRIVATE LIMITED," with an authorized capital of Rs 10,00,000 and a paid-up capital of Rs 10,00,000. Mercury EV-Tech Limited invested Rs 6,00,000 in this subsidiary by subscribing to 60,000 equity shares, representing 60 per cent of the paid-up capital. GLOBAL MERCURY CONTAINER PRIVATE LIMITED was established to manufacture and deal in containers, aligning with Mercury EV-Tech Limited's existing business. Additionally, the company acquired a 70 per cent stake in Haitek Automotive Private Limited for Rs 3.5 million to expand its presence in the West Bengal 3W market. Finally, Mercury received approval from GEDA to market and distribute lithium-ion battery-powered e-rickshaws in Gujarat for the 2024-25 fiscal year.
Mercury EV-Tech Ltd, formerly known as Mercury Metals Limited, is involved in the manufacturing of electric scooters, electric cars, electric buses, electric vintage cars, electric golf cars, and electric vehicles in India. The company has a market cap of over Rs 1,700 crore and reported positive numbers in Quarterly Results (Q2FY25) and half-yearly results (H1FY25).
As of November 2024, FIIs bought 30,00,000 shares and increased their stake to 1.72 per cent in the company compared to September 2024. The stock gave multibagger returns of 700 per cent in just 2 years, 11,400 per cent in 3 years and a whopping 27,700 per cent in 5 years. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.