The shares of Axiscades Technologies Limited started their trading session today at Rs 400 and, within a few minutes, the scrip was locked in the 5 percent upper circuit at Rs 402.20. In the past month, the stock has moved around 9.5 percent ranging from Rs 367.10 to the current price levels.
The stock price movements were observed after the company announced that its Board has considered and approved a 100 percent acquisition of ‘Add Solution GmbH’, a company based in Wolfsburg, Germany. The acquisition will be conducted in a phased manner through ‘Axiscades GmbH’ which is a wholly-owned subsidiary of Axiscades Technologies.
In the first phase, the company will acquire 94 percent by July 2023, and in the second phase, the rest 6 percent will be taken over which is planned to be by March 2025. The same is subject to various regulatory compliances.
Add Solution GmbH is engaged in and possesses specialization in automotive design as well as development. It offers services such as software testing, wiring systems, etc for global automotive OEMs.
In the last couple of quarters, the company has consistently increased its revenues with the most recent movement being from Rs 215 crores during Q3FY22-23 to Rs 225 crores in Q4FY22-23. Moreover, it witnessed ups and downs in the net profit figures reporting profits of Rs 16 crores during Q4FY22-23, as compared to losses of Rs 10 crores in the previous quarter.
The latest shareholding pattern data exhibit Promoters holding a 66.18 percent stake, and Foreign Institutional Investors (FIIs) holding a 0.08 percent stake in the company.
Axiscades Technologies Limited is involved in the business of ‘Engineering Design’ services, which aids in generating maximum revenue for the company. Geographically, the company derives a majority of its revenue from overseas operations. It serves various industries, some of which include energy, aerospace, etc.
Written by Amit Madnani
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