Mercury EV-Tech Expands Dominance in EV Market with Strategic Allotments, Key Acquisition, and GEDA Approval for Subsidized E-Rickshaws

Mercury EV-Tech Ltd. has been making strides in the electric vehicle (EV) industry, bolstering its market presence and financial stability through targeted expansions and strategic financial moves. Recently, the company completed two key allotments and acquired a major stake in another business, strengthening its position in the fast-growing EV market.

Strategic Developments

1. Preferential Allotments for Growth:
   • First Allotment: Mercury EV-Tech issued 1,44,25,666 equity shares to 40 investors at ₹75 per share, which brought in substantial funds to support liquidity and expansion initiatives.
   • Second Allotment: The company issued 4,53,00,000 convertible warrants to 19 investors, also priced at ₹75 each. These warrants can be converted into equity shares within 18 months, offering investors the opportunity to hold future equity, which aligns well with Mercury’s long-term growth plan.
2. Acquisition of Haitek Automotive Pvt. Ltd.:
   • Mercury EV-Tech acquired a 70% stake in Haitek Automotive for ₹3.5 million, expanding its footprint in the electric three-wheeler (3W) market in West Bengal. This strategic acquisition enables Mercury to utilize Haitek’s existing infrastructure and customer base, increasing its market share and competitiveness in the region.
3. Approval from Gujarat Energy Development Agency (GEDA):
   • Mercury received permission from GEDA to sell lithium-ion battery-powered e-rickshaws in Gujarat for FY 2024-25. Buyers of Mercury’s L5 and L3 e-rickshaw models can receive a ₹48,000 subsidy, a move that promotes sustainability and reinforces Mercury’s presence in Gujarat’s EV market.

Stock and Financial Highlights

Mercury EV-Tech’s stock performance reflects its growth momentum, with recent trading at ₹107.70, marking a 0.56% rise from the previous close. Over the past five years, the stock has delivered exceptional returns, up 31,000%, signaling a robust outlook and strong investor confidence. Foreign institutional investors (FIIs) also see promise in Mercury, holding a 0.16% stake (2,73,232 shares) as of September 2024.

Mercury’s recent Q1 FY25 financial results underscore its status as a top player in India’s sustainable EV market, driven by strategic partnerships, regulatory support, and a clear commitment to innovation.

Disclaimer: This information is for general informational purposes only and should not be considered as financial or investment advice. Please conduct your own research or consult a financial advisor before making any investment decisions. Past performance does not guarantee future results.