Vijay Kedia portfolio stock rallies as firm to issue warrants to the ace investor
1 min read 10 Oct 2022, 01:30 PM ISTThe Vijay Kedia portfolio stock rallied more than 10% to ₹235 apiece on the BSE in Monday's deals
PremiumShares of Atul Auto Ltd rallied more than 10% to ₹235 apiece on the BSE in Monday's trading session after the company during the weekend informed the company's board has approved a preferential issue of ₹115 crore worth of warrants to promoters and non-promoters of the company, including Indian ace investor Vijay Kishanlal Kedia.
The board has approved preferential allotment of 50.5 lakh fully convertible warrants aggregating ₹99.9 crore to ace investor Vijay Kedia. Apart from Kedia, the company will issue 6,56,565 warrants (equal to 2.37% equity stake) to promoter Khushbu Auto Pvt Ltd and 1,001,010 to promoter Jayantibhai Chandra at ₹198 each, post the board meet.
Atul Auto on Saturday said that the board has “approved to issue upto 58,08,080 Fully Convertible Warrants each convertible into, or exchangeable, at an option of Proposed Allottee, within a maximum period of 18 months from the date of allotment of Warrants into equivalent number of fully paid up equity share of the company of face value of ₹5 each at a price of ₹198 each payable in cash, aggregating upto ₹115 crore to specified Investors/ Identified Investors as listed below which also includes promoter, on preferential issue basis, subject to approval of shareholders."
A pre preferential issue of 13.51 lakh fully convertible warrants aggregating 6.16% stake (if converted and allotted) has been made to Chandra and post the allotment of a little over a lakh of warrants, his stake upon conversion of 14.52 lakh warrants amounts to 5.23%.
As per the shareholding pattern on the BSE, Vijay Kedia's Kedia Securities holds 3,21,512 equity shares i.e., 1.47% stake in the auto company as of June 2022. Vijay Kishanlal Kedia is among the marquee investors and his portfolio and bets are closely tracked by the stock market participants, As per Trendlyne, the investor publicly holds 16 stocks with a net worth of over ₹817 crore.
Atul Auto Limited is engaged in three wheeler manufacturing. Atul Auto shares are up about a per cent in a year's period whereas the Vijay Kedia portfolio auto stock has surged more than 22% in 2022 (YTD) so far.
