Auto Stock Rally 14% To Hit 52W-High On Declaring Warrants Worth Rs 4.06 Cr

On Monday, the shares of Pritika Auto Industries Ltd opened on the BSE at Rs 24.27 apiece and rallied 14.71% to reach a fresh 52-week-high of Rs 26.50. The rally in the shares of the auto company was witnessed after it declared warrants worth Rs 4.06 Cr.

"The Board of Directors of the Company in their meeting held on today i.e. 17th November, 2023, inter-alia, considered and approved the allotment of equity shares on conversion of 28,50,000 warrants into 28,50,000 equity shares of face value of Rs. 2/- each, to "Non-Promoters/Public Category", on preferential basis, upon receipt of balance amount aggregating to Rs. 4,06,12,500/- (Rupees Four Crore Six Lac Twelve Thousand and Five Hundred only) at the rate of Rs. 14.25 (Rupees Fourteen and Paise twenty five only) per warrant (being 75% of the issue price per warrant) from the allottees," said Pritika Auto Industries in a stock exchange filing.

"Pursuant to members approval, these warrants were allotted, in terms of SEBI (ICDR) Regulations, 2018 to Non-Promoters/Public Category, on 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 18,30,45,000/-consisting of 9,15,22,500 equity shares of Rs. 2/- each. The new equity shares so allotted, shall rank pari-passu with the existing equity shares of the Company," informed Pritika Auto Industries to the stock exchanges.

Consolidated net sales for the firm for the September 2023 quarter were Rs. 93.70 crore, 6.34% less than the Rs. 100.04 crore reported during the September 2022 quarter. The company reported a net profit of Rs. 3.78 crore for Q2FY24, which is 24.44% lower than the Rs. 5.00 crore reported for Q2FY23. EBITDA dropped from Rs. 13.10 crore in the same quarter the previous year to Rs. 12.43 crore in the quarter under review, a 5.11% decline.

Pritika Auto Industries Limited is an Indian firm that manufactures tractors and automobile parts. It was founded as a Public Ltd firm on April 11, 1980. Tractor and automobile component manufacture is the business of Pritika Auto Industries. It is one of India's top producers of machined castings.