Small Cap Auto Stock In Spotlight As Promoter Group Raises Stake By Acquiring 14,75,000 Shares

Mercury EV Tech failed to perform well on Tuesday as it showed a dip of 2%. There was a noticeable drop of 2% in shares of Mercury EV Tech Limited reported on Tuesday. Most recently, it has been observed that the share price stands at 89.48 which is 91.33 less than what was reported a day earlier. Over the years, the company has illustrated rapid and unprecedented growth resulting in multibagger returns of 500% in two years, 10,250% in three years and more than an astounding 25,000% in five years. However, considering the most recent data the stock currently is positioned at almost 39% of its previous stance which was at 64.32 to be precise.

It has been reported by FIIs that they had acquired 30 lakh shares, timely updating their presence of holding percentage from 1.72% to higher this November month of 2024.

Under the regulation of SEBI, it has been found that Raghuvir International Private Limited has increased its investment percentage in the company. Highlighting the rise of holding shares from 14.75 to 4.17 crore. Resulting in acquisition making it still not very high, barely 21.95% of the total company's mentioned share.

In addition, Raghuvir International obtained 53 lakh warrants that upon conversion, would increase its holdings to 24.74% of the share capital and 19.98% of the diluted share capital as well. It should be noted that the recently allotted equity shares have equal rights and obligations as the existing ones.

Earlier this year, Mercury EV-Tech purchased a 69.84 per cent shareholding interest in DC2 Mercury Cars Private Limited, a car design firm owned by the grand designer Dilip Chhabria. Seen from the prism of strategic investments, this deal which is estimated to be worth Rs 25 crore, will help to strengthen further mercury products' portfolio and brand equity in the EV market. In addition, the firm incorporated GLOBAL MERCURY CONTAINER PRIVATE LIMITED as a subsidiary and in the same context acquired 70% of Haitek Automotive Private Limited to diversify the activities of the company.

As for initiatives aimed at strengthening the company's market presence, Mercury EV-Tech received GEDA approval to market and distribute electric rickshaws in the territory of Gujarat which is one of the key measures towards increasing its product range in the EV direction.

Mercury Metals Limited is the former name of the company, which today is in the lead of Indian markets for Electric scooters, cars, buses, vintage cars as well as golf cars. Currently sitting at a staggering 1500 crore Rs in market capitalisation, Mercury EV-Tech is still growing its stance in the thriving EV market.

It has been recently disclosed that the company made a profit during the first quarter of FY25. They operated in profit during the first half of the fiscal year too.

The acquisition of companies and the international expansion of Mercury EV-Tech's global presence reinforces the plans that the company has for the Electric Vehicles market. The company is looking for sustainable growth with the trend of seeking electric mobility solutions.