Atul Auto hits 3-year high on foray into EV space; zooms 29% in one week

Atul Greentech, a subsidiary of Atul Auto, on January 11, 2023 announced its foray into the electric space with the unveiling of two electric three wheelers

Shares of Atul Auto rallied 7 per cent to hit over three-year high of Rs 362.70 on the BSE in Thursday’s intra-day trade.

In the past one week, the stock of the commercial vehicles company has zoomed 29 per cent after it announced its foray into the electric vehicle (EV) space. It was trading at its highest level since April 2019. In comparison, the S&P BSE Sensex was down 0.18 per cent at 60,938 at 11:42 AM.

Atul Greentech Private Limited (AGPL), a subsidiary of Atul Auto, on January 11, 2023 announced its foray into the electric space with the unveiling of two electric three-wheelers--Atul Mobili & Atul Energie at the Auto Expo 2023 in New Delhi.

Atul Auto is a prominent Gujarat-based three-wheeler (3W) manufacturer with a presence across segments and fuel types. Atul Mobili is a passenger vehicle and Atul Energie is a cargo variant with distinct looks, robust build quality and powerful performance.

According to the latest report by IMARC Group, the Indian electric three-wheeler market value is expected to reach US$1,874.9 million by 2027, making it one of the fastest-growing sectors.

The introduction of electric three-wheelers marks a new phase of growth and innovation for Atul Auto. Atul Mobili and Atul Energie are built with industry-leading technology, telematics and battery management systems (BMS), the company said in a statement.

AGPL is engaged in developing solutions for electric vehicles, lithium-ion batteries with BMS and telematics for various applications such as automobile, energy storage and other customized products.

The company is driven by leading experts in the automotive industry, battery, embedded systems and power electronics.

Meanwhile, for the first nine months (April to December) of the current financial year 2022-23 (9MFY23), Atul Auto has reported a 57.1 per cent year-on-year growth in its total sales at 18,065 units. The company had sold total 11,499 units during the same period last fiscal.

In the past six months, the stock price of Atul Auto has more-than-doubled or zoomed 110 per cent as compared to a 11 per cent rise in the S&P BSE Sensex.

On October 4, 2022, the company’s board approved issuing 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 said it will allot 5.05 million warrants to Vijay Kishanlal Kedia, and a total 757,575 warrant to promoters, Khushbu Auto Private Limited (656,565 warrants) and Jayantibhai Jagjivanbhai Chandra (101,010 warrants). The company had allotted these warrants on November 15, 2022.