Multibagger EV stock at Rs 78.1 & promoters increase stake: This EV charger infra company gears up for growth; announces strategic equity dilution at a pre-money valuation of Rs 200 crore!

Kiran Shroff
Multibagger EV stock at Rs 78.1 & promoters increase stake: This EV charger infra company gears up for growth; announces strategic equity dilution at a pre-money valuation of Rs 200 crore!

From Rs 2.02 to Rs 78.10 per share, the stock delivered multibagger returns of 3,766 per cent in 3 years.

Servotech EV Infra, a subsidiary focused on electric vehicle charging infrastructure, is taking significant strides to establish itself in the Indian market. The company secured funding through a 6 per cent equity dilution valued at Rs 200 crore, which will fuel their initial growth. Furthermore, they are actively setting up Proof of Concept (POC) sites at 10 strategic locations in North India within the next 100 days. These initial outposts, with each station costing approximately 15-25 lakh rupees depending on specifications, will serve as a springboard for their nationwide expansion plans.

Servotech EV Infra has appointed industry veterans Prem Prakash as CEO and Neeraj Gupta as AVP Operations to bolster their leadership and drive the company's vision of building a robust EV charging network across India. Prakash brings over two decades of experience in various sectors and will leverage his prior roles at companies like Ramco Group and Dish TV to lead Servotech to new heights. Gupta, with 24 years of expertise in EV charging, telecom, and hospitality, will steer all operational aspects, ensure customer satisfaction, and manage senior staff. He will also be responsible for developing annual operational plans to increase revenue and profitability, incorporating cross-functional and digital initiatives for business growth. Their combined experience positions Servotech well for this exciting new chapter.

Servotech, an established leader in electronics with over 20 years of experience, leverages its expertise to provide AC and DC EV charging solutions (under Servotech Power Systems Ltd.) for various applications like homes and businesses. They aim to be a key player in developing India's EV infrastructure. As a trusted brand with a nationwide presence (through Servotech EV Infra Pvt Ltd.), Servotech is known for innovation and advanced technologies, promoting sustainable transportation through its expansive charging network and commitment to a greener future.

Servotech Power Systems Ltd, a frontrunner in India's EV charging industry, is establishing a state-of-the-art manufacturing facility to lessen dependence on imported parts. This venture, achieved through collaboration with a global leader, will manufacture essential EV charger components like power modules and control circuits. With a planned production of 24,000 units initially, scaling up to meet the country's rising demand of 6 lakh units annually, Servotech aims to be a major player in the global EV charger market. This initiative not only strengthens India's position in the EV sector but also fosters job creation, economic growth, and widespread availability of reliable and affordable EV charging solutions across the nation.

After nearly rising 400 per cent in just 12 months, shares of Servotech Power Systems Ltd undergo correction, hitting the lower circuit for the 5th straight day. Today, shares of Servotech Power Systems Ltd plunged 5 per cent lower circuit to Rs 78.10 per share from its previous closing of Rs 82.20. The 52-week high of the stock is Rs 108.70 and the 52-week low of Rs 16.48 with a market cap of Rs 1,694 crore. The promoters of the company bought 42,50,000 shares and increased their stake to 61.37 per cent in January 2024 compared to 60.60 per cent in December 2024.

From Rs 2.02 to Rs 78.10 per share, the stock delivered multibagger returns of 3,766 per cent in 3 years. Investors should keep an eye on this multibagger EV stock.

Disclaimer: The article is for informational purposes only and not investment advice. 

DSIJ’s ‘Micro Marvel' service recommends micro-cap stocks with the potential to grow multifold in long run. If this interests you, do download the service details here.

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