Multibagger stock, Servotech Power Systems Limited, has announced the acquisition of its wholly-owned subsidiary, Techbec Green Energy Private Limited. The new subsidiary was incorporated on 27th July, 2023, in accordance with the regulations set by SEBI (Securities and Exchange Board of India).
Despite the weak market sentiments, Servotech Power Systems share witnessed significant buying interest after the acquisition news. The stock opened with an upside gap and reached an intraday high of ₹90.90 per share on the NSE, hitting the 5% upper circuit.
Regarding the cost of acquisition, the multibagger stock stated that an initial subscription amount of Rs. 9,99,900/- was made towards subscribing to 99,990 equity shares, each valued at Rs. 10/-. The authorized share capital of the company is Rs. 10,00,000, consisting of 1,00,000 equity shares.
The reason behind acquiring the subsidiary is to expand the business operations in India and abroad. The company aims to engage in manufacturing, assembling, processing, supplying, repairing, importing, exporting, and trading various types of batteries, including primary cells, primary batteries, rechargeable batteries, and more. They also plan to deal in components, parts, and accessories related to batteries and electrical equipment.
Furthermore, the small-cap stock below ₹100 mentioned that the acquisition will enable them to become manufacturers, traders, distributors, and dealers of components of EV Chargers used for electric vehicles.
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