Rs 2,198 Crore Order Book & DIIs Bought 15,00,000 Shares: Multibagger Penny Stock Under Rs 10, Board of the Company Approves Amalgamation of EMC Limited
The stock is up by 21 per cent from its 52-week low of Rs 7.80 per share and gave multibagger returns of over 1,100 per cent in 5 years.
Salasar Techno Engineering Limited has announced that its Board of Directors has approved the amalgamation of its wholly owned subsidiary, EMC Limited, with itself. The decision was made in a board meeting held on March 26, 2025.
The merger involves EMC Limited, an unlisted public company engaged in providing end-to-end power system solutions, and Salasar Techno Engineering Limited, a listed company specialising in the manufacturing of telecom towers, railway towers, transmission and distribution towers, steel bridges, and railway electrification projects. The company believes that this amalgamation will improve operational efficiencies and streamline the corporate structure.
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As EMC Limited is a wholly owned subsidiary, no cash consideration or share exchange will be involved in the process. The issued and paid-up equity share capital of Salasar Techno Engineering Limited will remain unchanged. The amalgamation has been reviewed and recommended by the Audit Committee and the Independent Directors' Committee, ensuring compliance with corporate governance norms.
The merger is still subject to approval from various authorities, including the National Company Law Tribunal (NCLT). The company has stated that it will provide further updates as the regulatory process progresses.
Established in 2006, Salasar Techno Engineering Limited (STEL) is a leading provider of customised steel infrastructure solutions in India. They offer a comprehensive range of services, including engineering, design, fabrication, galvanization and installation. STEL's product portfolio includes various towers (telecom, power transmission, lighting, etc.), substations, solar structures, railway electrification components, bridges and custom steel structures. Moreover, they act as an EPC contractor, managing complete projects for rural electrification, power lines and solar plants. As of December 31, 2024, STEL has a strong order book of Rs 2,198 crore.
Earlier, Salasar Techno Engineering announced that it has acknowledged the execution of a non-binding Memorandum of Understanding (MOU) with Elegant Forge & Equipments Pvt Ltd on February 13, 2025. The MOU outlines a proposed acquisition of Elegant Forge & Equipments, which is contingent upon the successful completion of due diligence conducted by an independent third party within 45 days. Elegant Forge & Equipments specializes in manufacturing industrial forging equipment and components for various sectors, including engineering, railways, defence, oil and gas and aerospace.
According to Quarterly Results (Q3FY25), the net sales increased by 33.3 per cent to Rs 375.18 crore and net profit increased by 23.3 per cent to Rs 11.95 crore compared to Q3FY24 while in its nine-month results (9MFY25), the net sales increased by 13 per cent to Rs 950.67 crore and net profit decreased by 11 per cent to Rs 32.11 crore compared to 9MFY24. In FY24, the company reported net sales of Rs 1,208.43 crore and net profit of Rs 52.95 crore.
In December 2024, DIIs took a fresh entry and bought 15,00,000 shares or 0.09 per cent stake. The stock is up by 21 per cent from its 52-week low of Rs 7.80 per share and gave multibagger returns of over 1,100 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.