Automobile Stock Below Rs 100 Declares In Focus As FPIs Buy Stake; Scrip Locked In Upper Circuit

A small-cap firm in the automobile sector is Mercury Ev-Tech Ltd. With a market valuation of Rs 1,701.41 Cr, the stock closed on Friday at a 5% upper circuit limit of Rs 96.92, after the announcement by the company's Board of Directors regarding a preferential issuance of equity shares and warrants.

The Board of Mercury Ev-Tech on Friday considered and approved to issue upto 1,57,41,000 equity shares, of the company, at a price of Rs.75/- per equity share each having a face value of Re.1/- each at a premium of Rs. 74/- aggregating to not more than Rs.118,05,75,000/-. A total equal to 100% of the entire issue size of Equity shall be called upfront from the proposed allottees upon the issuance of equity shares in line with this agreement.

The Board of Directors also considered and approved to issue upto 4,83,00,000 convertible warrants, of the company, at a price of Rs. 75/- per warrant each convertible into, or exchangeable for, 1 fully paid-up equity share of the company having face value of Re.1/- each at a premium of Rs. 74/- per share aggregating to not more than 362,25,00,000 /- to the proposed allottees.

Shree Saibaba Exim Pvt Ltd, Raghuvir International Pvt Ltd, Forbes EMF, Expertpro Realty Private Limited, Good Hill Trading Co are the top 5 proposed allottees of preferential issuance of equity shares.

Whereas Raghuvir International Pvt Ltd, Shree Saibaba Exim Pvt Ltd, Nexpact Limited, Eminence Global Fund PCC- Eubilia Capital Partners Fund I and North Star Opportunities Fund VCCBull Value Incorporated VCC Sub-Fund were the top 5 proposed allottees of preferential issuance of warrants.

The firm recorded standalone net sales of Rs 2.58 crore for the quarter ended June 2024, down 59.35% from Rs 6.35 crore for the same period in 2023. Additionally, from Rs 0.74 crore in Q1FY24 to Rs 0.39 crore in Q1FY25, the company's quarterly net profit plunged by 47.5%. The total value of earnings before interest, taxes, depreciation, and amortization (EBITDA) dropped as well; in June 2024, it was just Rs 0.74 crore, down 22.92% from Rs 0.96 crore the year before. Furthermore, from June 2023 to June 2024, profits per share (EPS) dropped from Rs 0.04 to Rs 0.02.

In India, Mercury Ev-Tech Limited is among the leaders in the production of electric vehicles, including electric scooters, electric cars, electric buses, electric vintage cars, electric golf cars, and more. It creates customized electric cars for a variety of uses in the hospitality, business, golf, club, and resort sectors, among others. Mercury Ev-Tech is also among the multibagger automobile stocks of Dalal Street as the stock has surged from Rs 45.21 to Rs 96.92 in the last 1 year representing a gain of 114.38%.