Micro-cap automotive components manufacturer hit 2 percent upper circuit in the day’s trade after the company’s board of directors approved raising funds for upto Rs. 63 Crores and has entered a JV agreement to start manufacturing tyre puncture kits and their components for automobiles.
In the day’s trade, the shares of Remsons Industries Limited hit upper circuit in the day’s trade at Rs. 594.25 and its market capitalization is Rs. 338.46 Crores.
The board of directors of Remsons Industries Limited has approved raising funds of upto Rs. 63 Crores by offering and issuing 2,70,000 warrants which can be converted to equity shares at Rs. 480 and 10,42,400 equity shares at Rs. 470.
The raised funds would be used to meet long-term capital requirements, working capital requirements, to fund new acquisitions / joint ventures, and re-payment of unsecured loans.
In addition to this, it has entered into a joint agreement with Aircom Group AG, to start Aircom Remsons Automotive Private Limited, to carry on the business of manufacturing and selling tyre puncture kits and their components for automobiles.
It has delivered multi-bagger returns of 138 percent in a year and 146 percent in the last six months. An investment of Rs. 1 lakh in the company would be worth Rs. 2.38 lakh in a year.
The company’s revenue from operations grew 9.2 percent from Rs. 286.45 Crores in FY22 to Rs. 312.8 Crores in FY23, accompanied by increasing profits of Rs. 5.36 Crore to Rs. 8.37 Crore.
It has reported a return on equity (ROE) of 21.8 percent and a return on capital employed (ROCE) of 16.27 percent, it is making good returns on its equity and capital employed.
Remsons Industries Limited is engaged in the manufacturing of a wide range of automotive component parts like auto control cables, Flexible shafts, Gear shift systems, and many more.
Written by: Bharath K.S
