Shares of Servotech Power Systems Ltd surged during the trading session on Monday after the company announced to issue warrants and equity shares to select warrant-holders. The company informed about the same through an exchange filing on Saturday. The company board of Servotech Power Systems approved allotment of 89 lakh convertible warrants to select investors belonging to promoter and non-promoter category at an issue price of Rs 83.40 apiece. The company has received in-principal approval from the National Stock Exchange of India (NSE) for the same. The investors, who will receive warrants on a preferential basis need to pay 25 per cent of the stipulated amount on subscription, while the remaining 75 per cent of the amount shall be paid on the conversion of the warrants into equity shares. Each warrant shall be converted into one equity share only, with a span of 18 months from the date of allotment, the filings added. Promoter Raman Bhatia and other investors including Eminence Global fund PCC- EUBILIA Capital Partners Fund, AG Dynamic Funds, Minerva Ventures Fund, Forbes EMF and Coeus Global Opportunities Fund are the institutions among the warrant allottees. Following the announcement, shares of Servotech Power Systems surged about 4 per cent to Rs 78.95 on Monday, commanding a total market capitalization of more than Rs 1,650 crore. The NSE-listed entity was settled at Rs 76.05 in the previous trading session on Friday.
Also read: Stock recommendations by market analysts for January 8, 2024: Jindal Saw, CDSL and REC In other news, the company board approved the allotment of 42,50,000 equity shares having a face value of Re 1 each to its promoter Sarika Bhatia at an issue price of Rs 9.30 apiece, consequent upon the conversion of 4,25,000 warrants. The company has received a total Rs 2.96 crore from the conversion of the warrants to Bhatia. The conversion has been done in accordance with the adjustment with the subdivision of the equity shares, which means that the equity shares were issued against each warrant held by the investors. The warrant holder needed to pay Rs 6.975 per warrant, 75 per cent of the issue value on the conversion. Servotech Power Systems is into the business of development of tech-enabled EV charging solutions leveraging their over two decades of experience and expertise in the electronics space. It offers an extensive range of AC and DC chargers which are compatible with different EVs and serve multiple applications.
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