Vijay Kedia's and Dolly Khanna's portfolio multibagger stock in green as it approves divestment of its entire 40 per cent stake in its joint venture company; know more here!

The stock gave multibagger returns of 200 per cent returns in just 1 year, 300 per cent in 2 years and a whopping 1,000 per cent in 3 years.

Talbros Automotive Components Limited (TACL), an auto component player with a diversified portfolio of gaskets, heat shields, forgings, suspension systems, antivibration products & hoses, announced that its Board of Directors have approved the divestment of its entire 40 per cent stake in its joint venture company Nippon Leakless Talbros. Post the stake sale by TACL, Nippon Leakless will own 100% of the Company. TACL will realize Rs. 81.8 crores for its entire 40% equity stake sale. (JV Company valued at Rs. 204.5 crores). This transaction is subject to certain conditions precedent and is expected to be completed in Q4FY24.

TACL intends to utilize the proceeds for its future capex and expansions. The JV Company, Nippon Leakless Talbros was formed in 2005 with TACL owning 40 per cent and Nippon Leakless owning the balance 60 per cent. The JV company manufactures gaskets for major 2-wheeler OEMs in India and achieved standalone sales of Rs 86.2 crore in FY23 (At 100 per cent).

Additionally, the company received new multi-year orders worth Rs 580 crore from both, domestic and overseas customers across its business divisions, product segments and JVs. These orders are to be executed over a period of the next 5 years commencing from FY25 onwards covering the company's product lines – gaskets, heat shields, forgings, chassis and rubber hoses. Here are the details:

Earlier, the board of directors of this multibagger company approved a stock split, subdividing each existing equity share with a face value of Rs 10 into five equity shares with a face value of Rs 2 each. The stock split ex-traded on Friday, October 27, 2023.

After the stock split, Dolly Khanna owns a total of 9,66,075 shares or 1.57 per cent stake and Vijay Kedia owns a total of 7,50,000 shares or 1.22 per cent stake in the company. In just 1 day, Vijay Kedia gains Rs 3,52,12,500 & Dolly Khanna gains Rs 4,53,57,221 from this multibagger stock.

Talbros Automotive Components Ltd is a company based in India with a market cap of Rs 1,865 crore. The company manufactures gaskets, steering components, suspension stamping, rubber components, and forgings. The company reported excellent numbers in its Quarterly Results, half-yearly results and annual results.

The stock gave multibagger returns of 200 per cent returns in just 1 year, 300 per cent in 2 years and a whopping 1,000 per cent in 3 years. Investors should keep an eye on this Small-Cap stock.

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