The shares of Atul Auto Ltd, a Vijay Kedia portfolio stock, shot up 14.05% to reach an intraday high of ₹ 244.40. This happened after the company’s board approved a preferential issue of ₹ 115 crores worth of warrants to promoters and non-promoters of the company, including ace investor Vijay Kishanlal Kedia.
Atul auto is a prominent three-wheeler manufacturer, based out of Gujarat. The company manufactures and sells auto-rickshaws in the domestic as well as international market.
As per the exchange filing, the board has approved the issue of up to 58,08,080 warrants at ₹ 198 per share. Each of them is convertible into one equity share of the company within a maximum period of 18 months from the date of allotment.
The company will allot a maximum of 50,50,505 warrants to Vijay Kedia, who is under the non-promoter category. Further, it will issue a maximum of 6,56,565 warrants to Khushbu Auto Private Limited and 1,01,010 warrants to Jayantibhai Jagjivanbhai Chandra who come under the promoter category.
Kedia Securities Private Limited already holds a 1.47% stake in the company, aggregating to 7.5 crores, as per the filings for the June quarter. The filings for the September quarter are awaited.
Warrants are a contract that gives the right, but not the duty, to buy or sell a security (usually equity) before expiry at a certain amount.
Atul Auto has a market capitalization of ₹ 470 crores and is a small-cap company. The company’s shares reached a 52-week high of ₹ 270 apiece on November 04, 2021, and an all-time high of ₹ 834.8 on September 09, 2014. On the other hand, it reached a 52-week low of 145.1 on June 21, 2022, and an all-time low of ₹ 2.75 on February 14, 2001.
Written by Simran Bafna
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