Rs 7,102 crore order book: Promoter bought 28,72,340 convertible warrants of multibagger railway wagons company at a 30 per cent discount of CMP

The stock gave multibagger returns of 300 per cent in 1 year and a whopping 1,925 per cent in 3 years.

The Board of Directors of Jupiter Wagons Ltd (JWL) convened and approved the allotment of 28,72,340 convertible warrants to one of the company's promoters, priced at Rs 470 per warrant which is a 33 per cent discount of the current market price (CMP). This issuance is conducted as a preferential issue in line with the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, and other relevant laws. The aggregate consideration for this issuance amounts to Rs 1,35,00,00,000, with each warrant including a premium of Rs 460. The sole investor in this transaction is Tatravagonka A.S. Post allotment, these warrants are issued in cash for a total consideration of Rs 1,34,99,99,800. Each warrant is convertible into one equity share within 18 months from the date of allotment, in one or more tranches. Initially, 25 per cent of the total consideration is paid by the allottees before the allotment, with the remaining balance payable upon conversion. Further communication regarding the conversion of securities or the lapse of the instrument’s tenure will be provided as appropriate.

Earlier, Jupiter Electric Mobility (JEM), a subsidiary of Jupiter Wagons, has made significant progress in developing and certifying Lithium-Ion Phosphate (LFP) battery technology for Indian trains, partnering with battery solutions leader Log9 Materials. JEM's achievements include becoming the first company to receive RDSO certification for an 11.2 kWh LFP battery pack for non-AC coaches, signifying a major step towards battery adoption in Indian Railways. Additionally, Siemens' purchase order for JEM's 72.8 kWh auxiliary batteries for Vande Bharat Trainsets, along with the pack's RDSO approval and technical qualification by BHEL, underlines the trust and validation JEM's technology has garnered. These milestones solidify JEM's commitment to modernizing and greening Indian Railways with its high-performance, safe, and long-lasting LFP battery solutions, ideal for various railway applications.

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About the Company

Jupiter Wagons Ltd (JWL) is a manufacturer focused on metal fabrication, specifically creating load bodies for commercial vehicles (like shipping containers and garbage-bin collectors), rail freight wagons, and various components. This diverse product portfolio caters to a wide range of industries, including mining, road construction, transportation, waste management, city services, and even national defence.

Talking about the financials, the company has a market cap of over Rs 28,000 crore and has delivered good profit growth of 80.1 per cent CAGR over the last 5 years. In its Quarterly Results (Q4FY24) and annual results (FY24), the company reported amazing numbers. As of March 31, 2023, the company order book stands at Rs 7,10,166 lakh (rounded off to Rs 7,102 crore).

In Q4FY24, the company delivered strong financial results. Total income surged 57 per cent year-over-year (YoY) to Rs 1,12,134 lakh. EBITDA followed suit, rising 59 per cent YoY to Rs 14,772 lakh. Profit after tax (PAT) witnessed a significant increase of 156 per cent YoY to Rs 10,422 lakh. The company's financial performance for FY24 was strong, with total income nearly doubling year-over-year to Rs 3,66,224 lakh. Profit after tax (PAT) followed suit, surging 165 per cent to Rs 33,279 lakh.

In April 2024, FIIs increased their stake to 2.28 per cent compared to 1.26 per cent in December 2023. The stock gave multibagger returns of 300 per cent in 1 year and a whopping 1,925 per cent in 3 years. Investors should keep an eye on this railway wagon company’s stock.

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