April 13, 2024
Funds

Forbes EMF, Minerva Ventures to AG Dynamics Fund: FIIs pump money in this small-cap stock under ₹100


Shares of Servotech Power Systems Ltd have been under the base building mode for since last six months. After climbing to a record high of 100 per share levels in June 2023, this small-cap stock under 100 has remained an ideal sell-on-rise stock for investors. However, FIIs are now expecting an upside in this small-cap stock. A good number of FIIs have applied to the preferential issue of the company. Some of those FIIs include AG Dynamics Fund, Minerva Ventures Fund, and Forbes EMF. The sub-committee of the board of directors of the company has allotted shares to these FIIs after receipt of application from these FIIs for their preferential offer.

Servotech Power Systems Ltd informed Indian stock market exchanges about the allotment of warrants to these FIIs on a preferential basis saying, “In terms of members’ approval obtained through postal ballot on November 17, 2023 by means of passing a Special Resolution and ‘In-Principal Approval’ obtained from the Stock Exchange i.e. National Stock Exchange of India Limited, approved the allotment of 89,00,000 (Eighty Nine Lakh) fully Convertible Warrants (‘Warrants’), carrying a right exercisable by the Warrant holder to subscribe to one Equity Share per Warrant, to persons belonging to ‘Promoter and Non-Promoter Public Category’ on preferential basis at an issue price of Rs. 83.40/- per Warrant, after receipt of stipulated amount i.e. 25% of the Issue Price as subscription amount in accordance with provisions of Chapter V of SEBI ICDR Regulations.”

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Each of the warrants, so allotted, is convertible into or exchangeable for one fully paid-up equity share having a face value of Re. 1/- (Rupee One only) of the Company by the provisions of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, on payment of the balance consideration i.e. 75% of the Warrant Issue Price from the Allottees within 18 months from the date of allotment of these warrants.

Details of FII investment

As per the details shared by Servotech Power Systems Ltd on the allotment of warrants on a preferential basis, Mauritius-based AG Dynamic Funds Limited has been allotted 15 lakh company shares at 83.40 per share. So, the net money received by Servotech Power Systems Ltd from this Mauritius-based FII is 12.51 crore. Similarly, US-based FII Minerva Ventures Fund has been allotted 15 lakh company shares at 83.40 apiece. This means this US-based FII has also invested 12.51 crore in this company. the sub-committee of the board of directors of the company allotted 15 lakh shares to Forbed EMF as well at the same 83.40 per share. This means, Forbed EMF also infused 12.51 crore in this small-cap company.

One more Mauritius-based FII Coeus Global Opportunities Fund has been allotted 20 lakh company shares, which means this FII invested 16.68 crore in Servotech Power Systems Ltd.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decision.

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