EV Stock In Green After These Major Announcements; Do You Own?

Mercury EV-Tech Ltd's shares climbed 5% on Tuesday hitting the upper circuit limit of Rs 121.05 per share compared to the previous day's closing of Rs 115.30. Over the year, the stock peaked at Rs 796.50 and dipped to a floor price of Rs 110.05.

Earlier this month, Mercury EV Tech's board approved a significant fundraising initiative through a preferential share issue. The company will issue up to 1,57,41,000 equity shares, or nearly 1.57 crore shares, at Rs 75 per share, which includes a face value of Re 1 per share and a premium of Rs 74 per share. This capital raise is expected to generate a maximum of Rs 118.05 crore. In its official statement, the company mentioned, "To issue up to 1,57,41,000 equity shares of the company at Rs 75 per equity share with a face value of Re 1 each and a premium of Rs 74 per share, aggregating to not more than Rs 118.05 crore to the proposed allottees."

Additionally, Mercury EV Tech plans to issue up to 4,83,00,000 convertible warrants, each priced at Rs 75. These warrants can be converted into fully paid-up equity shares with a face value of Re 1 and a premium of Rs 74 per share. This warrant issue is expected to raise Rs 362.25 crore. The company elaborated, "We will issue up to 4,83,00,000 convertible warrants at Rs 75 per warrant, convertible into or exchangeable for one fully paid-up equity share with a face value of Re 1 and a premium of Rs 74 per share, aggregating to not more than Rs 362.25 crore to the proposed allottees."

In a separate but equally significant development, Mercury EV Tech secured approval from the Gujarat Energy Development Agency (GEDA) to market and distribute lithium-ion battery-powered e-rickshaws in the state during the 2024-25 fiscal year. This endorsement positions the company as a key player in Gujarat's EV market and underscores its leadership in the clean energy sector.

As part of this initiative, Mercury EV Tech's L5 and L3 category e-rickshaws have been approved for a subsidy of Rs 48,000 per vehicle sold within Gujarat. This government-backed incentive further strengthens the company's efforts to promote sustainable transportation solutions. The company emphasized, "This approval highlights our commitment to advancing technology, promoting sustainability, and leading the electric vehicle market in Gujarat. It solidifies our role in driving progress toward a greener future."

Mercury EV Tech has long been a pioneer in the Indian EV market, offering a diverse portfolio that includes electric scooters, cars, buses, vintage vehicles, and golf carts. The company serves multiple industries, including hospitality, golf courses, and resorts, and has recently ramped up its research and development (R&D) efforts to focus on electric two-wheelers (2W), three-wheelers (3W), and four-wheelers (4W).