The shares of this microcap company jumped around 4 percent on Monday after the board announced a preferential issue of equity shares to certain allottees, including prominent investor Ashish Rameshchandra Kacholia.
Price Movement
With a market capitalization of Rs.240 crores, the shares of Shree OSFM E-Mobility Ltd started Tuesday’s trading session on a flatter note at Rs.162.95 compared to its previous close of Rs.162. During the trading session, the shares hit a high of Rs.168.15, gaining around 3.7 percent.
What Happened
Such a bullish movement in the share price was observed after the company announced the allotment of equity shares on a preferential basis.
Shree OSFM E-Mobility Ltd has announced the listing of an additional issue of 1,119,400 equity shares of Rs. 10 each, allotted on a preferential basis. These shares will be officially listed and admitted for trading on the Exchange from October 15, 2024.
The details include the security description as equity shares of Rs.10 each, with distinctive numbers ranging from 1,42,84,001 to 1,54,03,400. The lock-in date for these shares is April 14, 2025.
The company has received approval from the NSE for this listing, which includes shares issued to prominent investors such as Mr.Ashish Kacholia and Himalaya Finance & Investment Company.
Financial Performance
In its latest financial update, the company reported net sales of Rs.118 crore for FY24, marking a 44 percent increase from Rs.82 crore in FY23. Additionally, net profits of the company grew 166 percent to Rs.8 crore in FY24 compared to Rs.3 crore in FY23.
Domestic Presence
Shree OSFM E-Mobility Ltd operates extensively across 42 major cities in India, including key metropolitan areas such as Mumbai, Navi Mumbai, Pune, Bengaluru, and Kolkata.
The company manages a diverse fleet of over 3,500 vehicles, which encompasses small cars, sedans, SUVs, luxury cars, and buses. This substantial fleet supports its operations in employee transportation services tailored for large multinational corporations.
Important Financial Ratios
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 15.24 percent and a return on capital employed (RoCE) of 16.61 percent for the period spanning FY23-24. Further, during the same period, the net profit margin stood at 6.81 percent.
Company Profile
Shree OSFM E-Mobility Ltd specialises in employee transportation services for multinational corporations across major cities in India. Initially incorporated as Om Sai Fleet Management, the company rebranded to its current name to reflect its focus on e-mobility solutions.
Written by – Siddesh S Raskar
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