Mercury Ev-Tech hits 5% upper circuit after acquiring 69.84% stake in DC2 Mercury Cars

Shares of Mercury Ev-Tech Ltd surged 5% on January 2, 2025, hitting the upper circuit of ₹99.26 on the Bombay Stock Exchange (BSE). The rally came after the company announced a strategic acquisition of a 69.84% stake in DC2 Mercury Cars Private Limited for ₹2.5 crore. The acquisition is part of a move to expand Mercury Ev-Tech’s presence in the automotive sector, particularly in car designing and modifications.

Details of the Acquisition

In a regulatory filing dated January 1, 2025, Mercury Ev-Tech revealed the details of the acquisition:

• Mercury Ev-Tech entered into a Share Purchase Agreement with DC2 Mercury Cars and its promoter, Mrs. Anushree Chhabria.
• A total of 25,00,000 equity shares, priced at ₹10 each, were acquired from Mrs. Chhabria.
• The acquisition makes DC2 Mercury Cars a subsidiary of Mercury Ev-Tech.

Strategic Significance

DC2 Mercury Cars, led by renowned automotive designer Dilip Chhabria, specializes in:

• Designing passenger and sports cars.
• Customizing and modifying vehicles.
• Developing unique car designs for high-profile clients, including celebrities.

The acquisition is expected to enhance Mercury Ev-Tech’s product portfolio and create significant market synergies by leveraging Chhabria’s design expertise.

Financial Impact

DC2 Mercury Cars reported a turnover of ₹3.36 crore between April and November 2024, showcasing consistent growth from ₹2.76 crore in FY2023-24. This acquisition is expected to contribute positively to Mercury Ev-Tech’s overall business performance.

Investor Sentiment

The announcement has been well-received by investors, with the stock closing at ₹99.26, up 4.99% from its previous close of ₹94.54. The trading volume stood at 193.10K shares, reflecting heightened investor interest in the stock.

MERCURY EVTECH LIMITED Share Price history