Vijay Kedia is upping stake in auto stock that has raced 5,700% in nine years
Vijay Kedia is increasing his stake in Atul Auto, in which he first invested in 2005 at a price of Rs 9 per share. And, in nine years, the stock has risen by 5700 percent.
Value investor and Kedia Securities' MD Vijay Kedia is all set to make his second investment in Gujarat-based three-wheeler maker Atul Auto Limited which has issued warrants worth Rs 115 crore.
“The board approved to issue of up to 5.81 million warrants at Rs 198 per share, each convertible into one equity share of the company within a maximum period of 18 months from the date of allotment. The company will allot 5.05 million warrants to Vijay Kishanlal Kedia and a total of 757,575 warrants to promoters, Khushbu Auto (656,565 warrants) and Jayantibhai Jagjivanbhai Chandra (101,010 warrants),” Atul Auto said in an exchange filing.
Of this, Vijay Kedia is looking to invest Rs 100 crore via the preferential issue of warrants. He has been allotted 5 million warrants. Following the conversion of warrants to equity, Kedia’s shareholding in the automaker would increase to 18.2 percent.
As on June 30, 2022, Kedia Securities Private Limited held a 1.47 percent stake in Atul Auto, the shareholding pattern data shows.
Atul Auto stock raced over 14 percent in intraday trade on Monday. At 12:09 pm, the stock was trading 10.65 percent higher from the previous close at Rs 236.80 on BSE. In 2022 (year-to-date), the stock has made investors 21 percent richer as against the benchmark Sensex, which has fallen 2.5 percent during the period.
This is Vijay Kedia’s second investment in Atul Auto, in which he first invested in 2005 for Rs 9 per share. And, in nine years, the stock has risen by 5,700 percent.
The automaker has been one of the biggest multi-baggers in the past for Kedia, who is a well-known value investor with over 30 years of experience on Dalal Street.
Atul Auto’s sales have picked up over the last few months. In September, the firm sold 2,254 units, up 20.1 percent compared to the same month last fiscal in which it sold 1,876 units. On a quarterly basis, the company’s sales for April to September period rose 78.6 percent year-on-year to 11,309 units.
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