Multibagger stock hits upper circuit after acquiring subsidiary company
Multibagger small-cap stock below ₹100 has acquired its subsidiary company Techbec Green Energy
PremiumMultibagger stock: Servotech Power Systems shares are one of the multibagger stocks that Indian stock market has produced in recent year. The small-cap stock with a market cap of around ₹966.50 crore has delivered 180 per cent return in YTD time whereas in last one year, it has surged to the tune of 650 per cent. However, the stock is in news today for acquiring its subsidiary company Techbec Green Energy Private Limited. In one of its latest exchange filing, the multibagger small-cap stock informed Indian stock market bourses that Servotech Power Systems is going to incorporate the subsidiary by acquring its one lakh shares of ₹10 each.
Multibagger stock informed Indian bourses about acquisition of the subsidiary citing, "In accordance with the provisions of Regulation 30 read with Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, we would like to inform you that a wholly-owned subsidiary under name and style " Techbec Green Energy Private Limited " vide CIN: U27201DL2023PTC417728 has been incorporated as a wholly-owned subsidiary of Servotech Power Systems Limited on 27th July, 2023."
Multibagger stock hits upper circuit
After the outbreak of this stock market news, Servotech Power Systems share witnessed huge buying interest despite weak stock market sentiments on Dalal Street. Multibagger stock opened with an upside gap and went on to hit intraday high of ₹90.90 apiece on NSE, locking-in 5 per cent upper circuit within few minutes of stock market's opening bell today.
Subsidiary acquisition details
On cost of acquisition, the multibagger stock informed Indian bourses, "Initial subscription amount of Rs. 9,99,900/- (Rupees Nine Lakh Ninety Nine Thousand Nine Hundred only) towards subscribing to 99,990 (Ninety Nine Thousand Nine Hundred Ninety) equity shares at face value of 10/- (Rupees Ten only) each," adding, "The Company has an authorised share Capital of Rs.10,00,000 (Rupees Ten Lakh only) comprising of 1,00,000 (One Lakh) Equity Shares of Rs. 10/- (Rupees Ten only) each."
On reason for acquiring the subsidiary company, multibagger stock said, "To carry on the business in India or abroad as manufacturers, assemblers, processors, producers, suppliers, repairers, purchasers, sellers, importers, exporters, makers, fabricators and dealers in all batteries, primary cells and primary batteries and rechargeable batteries, cells containing manganese oxide, mercuric oxide silver oxide or other material, lithium batteries, cells, lead acid batteries, stationary batteries, starting batteries, storage batteries, traction batteries, alkaline batteries, dry batteries, button batteries, solar power batteries, mini batteries, emergency lights, dry cells and other batteries used in or required for industrial, transport, commercial and consumptive purpose, their components, parts, ingredients, substances, systems, consumable accessories or fittings including battery plates, cases, wires, knobs, accessories, distilled water, armature and armature winding, electrical wires and accessories, electrical motors, generators, accumulators, battery chargers, relays, transformers, auto transformers, electrical switches, plugs, sockets, circuit breakers, actuators, connectors, measuring instruments, millimeters and multi testers, electrical connectors and automobile parts including power packs, power supplies; generators, solar panels, chargers and sub-assemblies, components, parts and accessories thereof."
The small-cap stock below ₹100 went on to add that the acquisition aims to carry on the business as manufacturer, Trader, distributors, indenters, selling and buying agents manufacturers, representatives and dealers of components of EV Chargers used or required for Electric Vehicle.
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