This smallcap EV stock is up 38,000% in 5 years. Have you invested?

In just a month, the company's shares have gained over 83% and over 168% in a year. In the past five years, the stock has gained a whopping 38,900%.

In Short

• Smallcap EV stock delivers 38,900% in five years
• Company's stock hits upper circuit today
• Shares surge over 25% in past week alone

A little-known smallcap firm’s stock from the electric vehicle (EV) sector has once again hit the 5% upper circuit on Tuesday, marking its fifth consecutive session of rapid gains. Mercury Ev-Tech’s share price has surged by more than 25% over the past week, driven by robust buying momentum.

In just a month, the company’s shares have gained over 83% and over 168% in a year. In the past five years, the stock has gained a whopping 38,900%.

As of 1:34pm, the shares remained locked at Rs 132.60 apiece on the Bombay Stock Exchange (BSE), continuing the company’s remarkable upward trajectory.

The rally follows the company’s surprising announcement of a significant acquisition.

According to a recent stock exchange filing, the board has approved the purchase of a 70% stake in a key player within the electric three-wheeler market for Rs 35 lakh.

“The Board of Directors the Company at its meeting held today, inter-alia had considered and approved the acquisition/purchase of 70% stake in Haitek Automotive Private Limited, equivalent to 350,000 equity shares of Rs 10/- each at a price of Rs 10/- each, total consideration being Rs 35,00,000,” Mercury Ev-Tech said in a BSE filing on September 30.

With this acquisition, the company aims to strengthen its presence in the rapidly growing EV space, particularly in West Bengal, where demand for three-wheelers has seen a notable uptick.

“Mercury’s acquisition of a 70% stake in Haitek is a strategic move to strengthen its position in the 3W (three-wheeler) market in West Bengal. This region is known for its growing demand and potential for scale, which could enhance production efficiency and reduce costs,” Mercury Ev-Tech said.

The target company is engaged in the manufacturing of electric vehicles and boasts an extensive sales network for electric three-wheelers.

The acquisition is expected to be completed within 90 days, positioning the smallcap firm to benefit from the synergies, technology sharing, and potential cost efficiencies that the deal offers.

In addition to the acquisition, the company's board has made several new leadership appointments, further signaling its ambitions for expansion.

Two directors were appointed effective from October 1, 2024, reinforcing the company's strategy and governance as it prepares for future growth.

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