Olectra Greentech Cuts Stake to 1% After Buying Additional Shares in EVEY Trans (MSR)

Olectra Greentech Limited has announced the acquisition of an additional 5,01,717 shares in EVEY Trans (MSR) Private Limited. This follows their previous disclosure from September 11, 2023.

Alongside Olectra’s acquisition, EVEY Trans Private Limited has also acquired 5 crore additional equity shares in the same company. EVEY Trans (MSR) Private Limited, which is specifically set up as a Special Purpose Vehicle to execute a contract with MSRTC, now has Olectra’s stake reduced from the initial 34% to just 1% after this new allotment of shares.

The acquisition falls under related party transactions because EVEY Trans Private Limited, which holds the remaining 99% stake, and the promoter group (EVEY and Olectra Greentech) are connected through common control with MEIL Holdings Ltd. Both companies are part of the same promoter group. The acquisition is conducted at arm’s length, meaning it is done under fair and normal market conditions.

EVEY Trans (MSR) Private Limited operates in the service industry, focusing on owning, operating, or leasing electric vehicles, specifically for a contract with MSRTC. This acquisition aligns with the tender conditions for being a Special Purpose Vehicle. No governmental or regulatory approvals are required for this acquisition.

Acquisition Details

Cost of Acquisition: ₹50,17,170 for 5,01,717 equity shares of ₹10 each. The acquisition was made with a cash payment.

Percentage of Shareholding: After acquiring the additional shares, the company now holds 5,05,117 equity shares, representing a 1% stake in EVEY Trans (MSR) Private Limited.

About EVEY Trans (MSR) Private Limited

EVEY Trans (MSR) Private Limited was incorporated on July 14, 2023. It is involved in the business of owning, operating, and/or leasing electric vehicles in India. EVEY Trans (MSR) Private Limited has an authorised capital of ₹55.25 crore, which is divided into 5.52 crore equity shares of ₹10 each. The paid-up capital is ₹5.05 crore, with 50.51 lakh shares of ₹10 each.

About Olectra Greentech Limited

Olectra Greentech Limited, established in 2000, is headquartered in Hyderabad. The company specialises in manufacturing composite polymer insulators and electric buses. In the fiscal year 2024, the company’s business segments were divided as follows: electric buses made up 87.5% of the business, while composite polymer insulators made up 12.5%.

On August 20, 2024, the share price of Olectra Greentech Ltd opened at ₹1,620.05, touching the day’s high of ₹1,632.20 as of 09:56 AM on NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.