EV Company Board To Consider Fundraising Via Issuance Of Convertible Warrants

Mercury EV-Tech Limited has informed the exchange today that its Board of Directors will meet on September 13, 2024, to deliberate on a potential fundraising initiative. The company is considering raising capital through the issuance of convertible equity warrants and/or equity shares on a preferential basis. This move will be subject to necessary approvals from shareholders and other regulatory bodies.

The proposed fundraising comes at a pivotal time for Mercury EV-Tech as the company continues its efforts to strengthen its financial position and fuel its growth strategy in the electric vehicle (EV) sector. Convertible warrants offer investors the opportunity to purchase shares at a predetermined price in the future, providing a flexible funding mechanism while ensuring the company secures capital for its expansion plans.

Mercury EV-Tech's stock saw a 5% surge, reaching an intraday high of Rs 72 per share, up from the previous closing price of Rs 69.40. Over the past year, the stock has delivered impressive returns, gaining 74%. Over the past five years, the stock has generated multibagger returns of 2,100%, underscoring investor confidence in the company's growth trajectory. Mercury EV-Tech currently holds a market capitalization exceeding Rs 1,260 crore.

Net sales for the quarter stood at Rs 2.58 crore, a 59.35% drop compared to Rs 6.35 crore in June 2023. Additionally, net profit fell by 47.5%, decreasing to Rs 0.39 crore from Rs 0.74 crore in the same period the previous year. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also declined to Rs 0.74 crore, down 22.92% from Rs 0.96 crore in June 2023. The company's Earnings Per Share (EPS) dropped from Rs 0.04 in June 2023 to Rs 0.02 in June 2024.

Earlier this year, on May 27, 2024, the company received approval from the Road Transport Department of Uttarakhand to sell electric vehicles, including E-Rickshaws and E-Carts. These vehicles are designed for both passenger transportation and load-carrying applications, marking a significant milestone in the company's efforts to expand its product offerings in the Indian market.

The approval represents a key achievement for Mercury EV-Tech as it ventures deeper into the rapidly growing electric vehicle market. With a focus on sustainability and eco-friendly transportation solutions, the company is poised to tap into the increasing demand for electric vehicles across India. The government's push toward clean energy and electric mobility aligns with Mercury EV-Tech's strategy of driving innovation and reducing carbon emissions.

Mercury EV-Tech Limited has been a pioneer in the development of electric vehicles in India, producing a wide range of EVs including electric scooters, cars, buses, vintage cars, and golf carts. The company also caters to various industries such as hospitality, golf courses, and resorts. In recent years, it has expanded its research and development efforts to focus on electric two-wheelers (2W), three-wheelers (3W), and four-wheelers (4W), demonstrating its commitment to innovation and growth in the EV space.