Atul Auto jumps 14% after board approves preferential allotment of warrants

Shares of three-wheeler manufacturing company Atul Auto jumped as much as 14 per cent in Monday’s intra-day trade after the company's board approved a preferential issue of warrants worth Rs 115 crore to promoters and non-promoters of the company, including investor Vijay Kedia.

The board approved to issue up to 58,08,080 fully convertible warrants at Rs 198 per share, each convertible into, or exchangeable, at an option of the proposed allottee, within a maximum period of 18 months from the date of allotment, the company said in a BSE filing.

Atul Auto will allot 50,50,505 warrants to non-promoter Vijay Kishanlal Kedia, 6,56,565 warrants to promoter Khushbu Auto Private Limited and 1,01,010 warrants to promoter Jayantibhai Jagjivanbhai Chandra, the company said.

At 12:19 pm, the scrip was trading 10 per cent higher at Rs 235 over its previous day’s closing price of Rs 214 apiece. The stock has risen about 22 per cent in the last month, while it has surged nearly 20 per cent year-to-date.

Atul Auto, incorporated in the year 1986, is a small-cap company (having a market cap of Rs 515 crore) operating in the autosector. Its key products include 3-wheelers and auto spare parts.