1,000 Per Cent Returns: Multibagger Auto Company Acquired 51.01 Per Cent Stake in Astro Motors Pvt Ltd
The shares of the company have a PE of 30x, an ROE of 18 per cent and an ROCE of 16 per cent.
Remsons Industries Ltd acquired a 51.01 per cent stake in Astro Motors Private Limited through a combination of methods. Firstly, Remsons will subscribe to 62,500 new equity shares of Astro Motors, each with a face value of Rs 10, for a cash price of Rs 1,600 per share, totalling Rs 10 crore. Secondly, Remsons will acquire 26,400 existing equity shares of Astro Motors from its promoters. The total number of shares being acquired is 88,900, representing 51.01 per cent of Astro Motors' total paid-up capital. The total cost of this acquisition is approximately Rs 14.22 Crore.
Astro Motors Private Limited, incorporated on February 07, 2020, operates in the automobile industry, focusing on the development and manufacturing of electric vehicles for cargo, loaders, passengers, and micro-mobility. As of March 31, 2024, its turnover was Rs 3.55 Lakh. The acquisition is aimed at securing a majority stake in Astro Motors, making it a subsidiary of Remsons Industries. This transaction is not considered a related party transaction and does not require any governmental or regulatory approvals. The indicative time period for the completion of this acquisition is by June 30, 2025.
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About the Company
Remsons Industries Limited, established in 1971, is a prominent manufacturer of auto components. Their diverse product portfolio encompasses both mechanical and electronic components, as well as lighting solutions. Mechanically, they produce control cables, gear shifters, winches, pedal boxes, parking brake systems, and jack kits. Their electronics division focuses on sensors, rearview cameras, sound systems, wireless chargers, infotainment systems, and digital clusters. Additionally, Remsons offers a range of lighting solutions, including headlamps, tail lamps, signal lamps, interior lighting, and active spoilers. The company operates five manufacturing plants across India and two in the UK, including the facility acquired as Magal Cables, now known as Remsons Automotive UK Ltd.
Remsons Industries Ltd caters to a wide array of clients in the automotive sector. Domestically, they supply to major original equipment manufacturers (OEMs) such as Maruti Suzuki, Hero MotoCorp, Ashok Leyland, Tata, Mahindra, PSA (Peugeot), and Piaggio. Their reach extends globally, as they also provide components to international OEMs, including Ford Motor Co., Jaguar Land Rover, Daimler, Aston Martin, and Volvo. Furthermore, Remsons serves over 250 dealers in the after-market, demonstrating a comprehensive approach to the automotive supply chain.
The company has a market cap of over Rs 400 crore and he stock gave multibagger returns of over 1,000 per cent in 5 years. The shares of the company have a PE of 30x, an ROE of 18 per cent and an ROCE of 16 per cent. Investors should keep an eye on this auto stock.
Disclaimer: The article is for informational purposes only and not investment advice.