Servotech Power hits upper circuit as stock trades ex-split; co incorporates new subsidiary

Shares of Servotech Power Systems hit an upper circuit on Friday as the multibagger stock traded ex-split with a new ISIN number on Friday, July 28. The company also incorporated a new wholly owned subsidiary on Thursday, the company said in an exchange filing on Thursday.

Servotech Power Systems has incorporated a new wholly owned subsidiary named Techbec Green Energy Private Limited on July 27, 2023, the company said in the exchange filing. The new entity will be engaged in manufacturing and trading of batteries.

Also, the stock traded ex-split in 2:1 ratio, implying that each stock of the company with face value of Rs 2 each has now been divided into two stocks with a face value of Rs 1 each. The company board had approved the stock split in May 2023 to enhance the liquidity of the company’s equity shares and to encourage wider participation in the stock market.

Shares of Servotech Power Systems hit an upper circuit of 5 per cent to Rs 90.90 on Friday, commanding a total market capitalization around Rs 1,925 crore. The scrip had settled at Rs 86.6 on an adjusted basis on Thursday. The stock has gained about 22 per cent in the last one week.

Prior to this announcement, the company had split its equity shares in 1:5 ratio in February this year. Then, the shares with the face value of Rs 10 each were divided into five equity shares with a face value of Rs 2 each. This is the second split announced by the company in 2023.

Shares of Servotech Power Systems have delivered multibagger returns to the investors. The stock has soared about 1,300 per cent in the last one year, while the stock has gained about 300 per cent in the six months. The stock has gained about 465 per cent in 2023 so far.

New Delhi-based Servotech Power Systems is a leading manufacturer and distributor of EV charging solutions, solar products and medical devices in the country. It also manufactures and distributes EV charging solutions, solar products and medical devices.

Servotech Power Systems clocked a 1,050 per cent rise in the consolidated net profit on a year-on-year (YoY) basis at 4.11 crore in June 2023 quarter, as against a bottom line of Rs 0.36 crore in the same quarter a year ago. Its revenue from operating increased 148 per cent to Rs 79.57 crore in Q1FY24, which was Rs 32.04 crore a year ago.

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