Multibagger smallcap hit 5% upper circuit on stock split and setting up new subsidiary
Smallcap firm Servotech Power Systems hit a 5% upper circuit at Rs 90.9 in Friday's trade on NSE on stock split and setting up a wholly-owned subsidiary — Techbec Green Energy. According to information available on NSE, the board earlier announced the sub-division (split) of equity shares in the ratio of 1:1. That means each share of the company with a face value of Rs 2 is split into two shares with a face value of Re 1 each.
The firm had fixed the 28th of July as the ex-split date. Earlier in February, the company had also split its equity shares in a 1:5 ratio. That means the shares with a face value of Rs 10 each were divided into five equity shares with a face value of Rs 2 each.
Meanwhile, Servotech Power Systems has also announced plans to set up a wholly-owned subsidiary «Techbec Green Energy Private Limited» (TGEPL). The new subsidiary will be engaged in the manufacturing and trading of batteries for electric vehicles. New Delhi-based Servotech Power Systems is a leading manufacturer and distributor of EV charging solutions, solar products, and medical devices in the country.
The firm will hold a 99.99% stake in TGEPL. In Q1 FY24, Servotech Power Systems posted a consolidated net profit of Rs 4.10 crore, boosted by higher revenues amid demand for smart power solutions equipment. It had posted a net profit of Rs 35 lakh in the corresponding period last year, the company said in an exchange filing.
The company's total revenue more than doubled to Rs 79.81 crore from Rs 32.06 crore in the year-ago quarter. Shares of Servotech Power Systems have delivered multibagger returns to investors. The stock has rallied nearly 1400% in the last year, while the stock has gained about 218% in the last three months.
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