Multibagger Stock Servotech Power Sets New Subsidiary, Scrip Up 431% YTD

Servotech Power Systems has announced plans to set up a wholly-owned subsidiary -- Techbec Green Energy Private Limited. The new subsidiary will be engaged in the manufacturing and trading of batteries for electric vehicles.

Delhi-based Servotech Power Systems is a leading EV charger maker. It will hold a 99.99 per cent stake in the newly incorporated subsidiary.

The development assumes significance as the decision comes amid rising demand for electric vehicles in the country. Notably, one of the most essential ingredients in EVs is the battery.

Servotech Power Systems is listed on NSE. The company had last week posted a consolidated net profit of Rs 4.10 crore. The profit was boosted by higher revenues amid demand for smart power solutions equipment.

The company had posted a net profit of Rs 35 lakh in the corresponding period last year, the company said in an NSE filing.
The total revenue for the June 2023 quarter more than doubled to Rs 79.81 crore from Rs 32.06 crore in the year-ago quarter.
Servotech Power Systems is a leading manufacturer of solar, EV chargers, power-backup and other smart power solutions.

On Friday, July 28, Servotech Power Systems will begin trading with a new ISIN number, the company announced in an exchange filing. The company's board of directors has approved a 2:1 stock split, which will result in each share of the company having a face value of Rs 2 splitting into two shares of Rs 1 each.

A sub-division (split) of its equity shares was announced by NSE-listed Servotech in May 2023. Each share of Servotech Power now has a face value of Rs 2 and the new face value following the split will be Re 1. In order to determine the eligibility of shareholders for the purpose of stock split, the Board of Directors of the company has fixed July 28 as the record date. The company has informed NSE of its new equity shares' International Securities Identification Number (ISIN) code which would be INE782X01033.

On Thursday, the shares of Servotech Power Systems closed on the NSE at Rs 172 apiece down by 1.40% from the previous close of Rs 174.45. The stock has produced a multibagger return over the past five years of 3,312.70% and a multibagger return over the past year of 1,315.64%. The stock has gained 431.19% year to date, and during the past six months, it has produced a multibagger return of 269.65%.