Mercury Ev-Tech share price was locked at 5% upper circuit for the fifth straight session on Tuesday led by strong buying momentum. Mercury Ev-Tech shares have rallied over 25% in one week.

Mercury Ev-Tech announced that its board of directors approved the acquisition of 70% stake in Haitek Automotive Private Limited for ₹35 lakh.

“…the Board of Directors the Company at its meeting held today, inter-alia had considered and approved the acquisition/purchase of 70% stake in Haitek Automotive Private Limited, equivalent to 350,000 equity shares of Rs.10/- each at a price of Rs.10/- each, total consideration being ₹35,00,000,” Mercury Ev-Tech said in a BSE filing on September 30.

Henceforth, Haitek Automotive Private Limited will be considered as Subsidiary Company of Mercury EV-Tech Limited, it added.

Haitek Automotive is engaged in the manufacturing of Electric Vehicles and Sales Network of electric three-wheelers. The indicative time period for completion of the acquisition is 90 days.

“Mercury’s acquisition of a 70% stake in Haitek is a strategic move to strengthen its position in the 3W (three-wheeler) market in West Bengal. This region is known for its growing demand and potential for scale, which could enhance production efficiency and reduce costs,” Mercury Ev-Tech said.

By acquiring a majority stake, Mercury can leverage Haitek’s existing operations, distribution networks, and customer base. This could lead to increased market share and improved profitability. Additionally, synergies from this acquisition might allow for shared resources, technology transfer, and innovation in product development, it added.

Additionally, the board of Mercury Ev-Tech also approved the appointment of Ajay Ramkrishna Shukla as an Additional Director of the Company with effect from October 01, 2024 under the Category of Independent Director for the second term of 5 years.

Arif Rajjak Sayyad has also been appointed as an Additional Director under the Category of Non-Executive-Non Independent with effect from October 01, 2024.

Mercury Ev-Tech Share Price

Mercury Ev-Tech share price jumped more than 81% in one month and over 86% in three months. However, the small-cap stock has risen 11% year-to-date (YTD), while it gave multibagger returns of more than 171% in one year and a staggering 19,400% return in three years.

At 10:20 am, Mercury Ev-Tech shares were still locked at 5% upper circuit at ₹132.60 apiece on the BSE.

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