Auto Stock In Focus On Conversion of 12.98 Lakh Warrants Into Equity Shares: Do You Own?

Pritika Auto Industries is a company that engages in the manufacturing and distribution of various metal products, alloys, castings, machine tools, tractor parts, automobile parts, machine equipment, imports, exports, agents, buyers, and sellers of machinery, plant equipment, component, spares, tools, engineering goods, and accessories.

Upon receipt of the balance amount aggregating to Rs. 1,84,96,500/- at the rate of Rs. 14.25 per warrant being 75% of the issue, the company announced the allocation of equity shares upon conversion of 12,98,000 warrants into 12,98,000 equity shares with a face value of Rs. 2/-each at an issue price of Rs. 18/-each, including a premium of Rs. 17/-each to "Non-Promoters/Public Category," on a preferential basis. This puts the small-cap auto stock, with a market cap of Rs. 446 Cr, in the spotlight.

"Pursuant to members approval, these warrants were allotted, in terms of SEBI (ICDR) Regulations, 2018 to Non-Promoters/Public Category, on a preferential basis, at an Issue Price of Rs. 19/- per warrant on payment of Rs.4.75 per warrant, being 25% of the Issue Price, entitling the warrants holders to get their warrants converted into equal number of Equity Shares of the Company by paying remaining 75% i.e., Rs. 14.25 within 18 months from the date of warrant allotment. Consequent to today's conversation of warrants/allotment of Equity Shares, the issued and paid-up capital of the Company stands increased to Rs 32,33,75,334 consisting of 16,16,87,667 equity shares of Rs. 2/- each," said Pritika Auto Industries in a regulatory filing.

The company has announced the financial results for the year ended 31st March 2024 on Thursday, 23rd May 2024. On a standalone basis, the company reported a net income of Rs 83.50 Cr in the quarter ended 31st March 2024 compared to Rs 76.17 Cr in the same quarter of FY23. Its net expenses reached Rs 76.86 Cr in the quarter under review which was Rs 71.74 Cr in the year-ago quarter. Pritika Auto Industries said its EBIT stood at Rs 6.64 Cr in Q4FY24 as against Rs 4.43 Cr in Q4FY23. The auto company said its quarterly standalone net profit was Rs 2.23 Cr in the quarter under review which was Rs 1.88 Cr in the same quarter of the previous year.

In the morning trade on Friday, the shares of Pritika Auto Industries were trading at Rs 27.55 apiece on NSE. During the March 2024 quarter, the company reported promoters' shareholding of 65.80%, FIIs stake of 4.12% and public stake of 30.07% which was 68.38%, 2.41% and 29.21% respectively during the December 2023 quarter or Q3FY24.