Mercury EV-Tech Strengthens Its Position In The EV Market By Acquiring 70% Stake In Haitek Automotive

Mercury EV-Tech Limited has announced that the board of the company has approved the proposal to acquire a 70% stake in Haitek Automotive Private Limited. In such an agreement at 350000 equity shares of Haitek Automotive Private Limited at Rs 10 per share the entire cost of the transaction relates to Rs 35 Lacs. Following this development, Haitek Automotive will become a subsidiary of Mercury's, while enriching the market share and geographical spread of the Company within the EV exchange domain.

The merger made the market optimistic and helped its shares paper against a 5% rise to Rs.126.29 exchanging houses which used to close at Rs 120.28 in the BSE. This uptick comes amidst a remarkable performance for the stock, which has delivered a staggering multibagger return of 160% over the past year, an astonishing 18,475% return over three years, and an extraordinary 37,000% return over five years.

Along with the acquisition, Mercury EV- tech recently achieved another milestone with approval from the Gujarat Energy Development Agency GEDA. The extension has been given to the company to sell and distribute lithium ion-powered e-rickshaw vehicles in the Gujarat state for the year 2024 -25.

This affirmation is a major achievement for Mercury EV-Tech, contributing to its penetrating efforts in the electric vehicle sphere through its focus on innovation and equality in the works. The company offers e-rickshaws of L5 and L3 categories that qualify for the government subsidy of Rs 48,000 per sold unit in Gujarat. This latest development confirms yet again that Mercury EV-Tech is on the path of eco-friendly transport solutions and also improves its standing in the EV market of the state.

Mercury EV-Tech is also exploring the possibility of raising a significant amount of capital. The Board of Directors approved a proposal for issuance of equity shares up to 1,57,41,000 and convertible warrants for 4,83,00,000 to bunched investors. Shares will be offered at a price of Rs 75 raising Rs 118,05,75,000 investment from 44 investors. At the same time, the convertible warrants will be issued at the same price affecting Rs 362,25,00,000 from 20 investors. The equity shares and the underlying warrants shall be issued at face value of Re 1 and Rs 74 as the premium. Equity shares will be paid up fully on dispatch and warrants half at order and the balance on distribution after a 25% deposit on the convertible warrants or upon exercising the rights. Both warrants are subject to GAAP restrictions or member and internal approvals.

Mercury EV-Tech has now positioned itself as the first mover in the electric vehicle segment in India with an electric two-wheeler strong product mix which includes electric scooters, cars, buses, vintage vehicles, golf carts automobiles and many more.

The company keeps developing its R&D services for different sectors including hospitality, golf courses & resorts. The company has in the recent past concentrated on electric two-wheelers (2W), three-wheelers (3W), and four-wheelers (4W) adding more reasons to their quest for growth and innovation in the EV world.