Atul Auto's stock price jumped 14% on Monday

11 Oct 2022 , 09:30 AM

In intraday trading on Monday, shares of Atul Auto surged 14% to Rs244.85 on the BSE after the company’s board approved a preferential sale of warrants valued at Rs115 crore to the company’s proprietors and non-promoters, including investor Vijay Kishanlal Kedia.

“The board approved the issue of up to 5.81 million warrants, each of which is convertible into one equity share of the company at a price of Rs198 per share within a maximum of 18 months from the date of allocation. According to a stock exchange filing by Atul Auto, Vijay Kishanlal Kedia would earn 5.05 million warrants from the company, while the promoters Jayantibhai Jagjivanbhai Chandra and Khushbu Auto Private Limited will each receive a total of 757,575 rights.

According to statistics on ownership patterns as of June 30, 2022, Kedia Securities Private Limited owned 1.47 % of Atul Auto. Gujarat-based Atul Auto is a well-known 3-W producer with a strong presence in a variety of market categories and fuel types. The firm has a production capacity of 1.2 lakh units per year, which is considerably underutilized given that FY22 sales volume is estimated to be approximately 16,000 units.

For feedback and suggestions, write to us at [e-mail]