Atul Auto soars after board approves preferential allotment of warrants

Atul Auto surged 9.39% to Rs 234.10 after the company said its board approved raising upto Rs 115 crore through issue of fully convertible warrants.

The board approved issuing 58,08,080 fully convertible warrants, aggregating upto Rs 115 crore. The company will issue the warrants on preferential issue basis to three specified investors.

Each warrant is 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 Rs 5 each at a price of Rs 198 each.

The company will allot 50,50,505 warrants to Vijay Kishanlal Kedia (non-promoter); 6,56,565 warrants to Khushbu Auto (promoter); and 1,01,010 warrants to Jayantibhai Jagjivanbhai Chandra (promoter).

Post conversion of warrants into equity shares, Vijay Kishanlal Kedia will hold 18.20% stake in the company, while Khushbu Auto will hold 2.37% stake. Jayantibhai Jagjivanbhai Chandra's stake will dilute to 5.23% from 6.16% currently.

As on June 2022, Kedia Securities held 3,21,512 shares, or 1.47% stake, in the company.

Atul offers complete range of 3-wheeler products across the fuel range - diesel, petrol, CNG, LPG and electric.

On a consolidated basis, Atul Auto reported net loss of Rs 3.65 crore in Q1 June 2022 as against net loss of Rs 6.21 crore in Q1 June 2021. Net sales rose 233.24% to Rs 104.57 crore in Q1 June 2022 over Q1 June 2021.

The company's total three-wheelers sales jumped 20.15% year-on-year to 2,254 units in September 2022.

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