On Friday, Servotech Power Systems' shares hit an upper circuit as the multibagger stock traded ex-split with a new ISIN number on Friday, July 28. On Thursday, the company also incorporated a new wholly-owned subsidiary, the company said in an exchange filing.
Servotech Power Systems has created a new wholly owned subsidiary called Techbec Green Energy Private Limited on July 27, 2023, the company said in an exchange filing. The new company will be involved in manufacturing and trading batteries.
The stock was also split in 2: 1 ratio, meaning that each stock of the company has now been divided into two stocks with a face value of Rs. 1 each. The stock split was approved by the company board in May 2023 to enhance the liquidity of the company s equity shares and encourage greater participation in the stock market.
On Friday, shares of Servotech Power Systems rose 5 per cent to 90.90, resulting in a total market capitalization of around 1,925 crore. The scrip had settled at 86.6 rupees on an adjusted basis on Thursday. The stock has surged about 22 per cent in the past few weeks.
The company split its equity shares in 1: 5 ratio in February this year. The shares with a face value of Rs 10 each were divided into five equity shares with a face value of Rs 2 each. This was announced in 2023 as the second split announced by the company.
The shares of Servotech Power Systems have delivered multibagger returns to investors. The stock has surged by about 1,300 per cent in the past year, while the stock's value has increased about 300 per cent in the past six months. The stock has surged by 465 per cent in 2023, up from 458 per cent in the same period last year.
Servotech Power Systems, based in New Delhi, is a leading manufacturer and distributor of EV charging solutions, solar products, and medical devices in India. It also produces and distributes EV charging devices, solar products and medical devices.
Servotech Power Systems' consolidated net profit rose to 4.11 crore in the first quarter of 2023 as compared to a net loss of 0.36 lakh in the same quarter a year ago. Its operating profit rose 148 per cent to Rs 79.57 crore in Q1 FY24, which was Rs 32.04 crore a year ago.