Mercury Ev-Tech Shares Surge Over 5% Following Strategic Acquisition Move

Mercury Ev-Tech shares witnessed a notable surge of over 5% on January 2, 2025, hitting the upper circuit at ₹99.26 during Thursday's trading session. This rally comes in the wake of the company’s announcement regarding a strategic acquisition of DC2 Mercury Cars Private Limited. The move signals Mercury Ev-Tech's commitment to expanding its foothold in the electric vehicle (EV) market.

Acquisition Details

In an exchange filing, Mercury Ev-Tech disclosed a share purchase agreement with DC2 Mercury Cars Private Limited and Anushree B. Chhabria. DC2 Mercury has a paid-up capital of ₹3.58 crore, represented by 35,80,000 equity shares at a face value of ₹10 each. Under the agreement, Anushree B. Chhabria, the principal shareholder, will transfer 25,00,000 shares—amounting to 69.84% of the company's total equity—to Mercury Ev-Tech at ₹10 per share. The transaction is valued at ₹2.5 crore.

This acquisition will make DC2 Mercury Cars a subsidiary of Mercury Ev-Tech. The collaboration, under the brand "DC Mercury Cars," is expected to leverage the design expertise of Dilip Chhabria, a renowned car designer and the Chief Designer of DC2 Mercury. The partnership aims to enhance Mercury Ev-Tech’s market acceptance and accelerate business growth.

Company Background and Market Impact

Mercury Ev-Tech, formerly known as Mercury Metals Limited, has transitioned into a prominent player in India’s EV industry. It manufactures a wide range of electric vehicles, including scooters, cars, buses, vintage cars, and golf carts. The company, with a market capitalization exceeding ₹1,700 crore, has showcased robust performance in its Q2 FY25 and H1 FY25 financial results.

DC2 Mercury Cars, on the other hand, specializes in designing passenger and sports cars and customizing existing vehicles. The acquisition aligns with Mercury Ev-Tech’s strategy to penetrate deeper into the EV sector while capitalizing on DC2 Mercury’s design expertise and legacy.

Mercury Ev-Tech has delivered multibagger returns, with its stock surging 700% over two years, 11,400% over three years, and an astounding 27,700% in five years. The latest acquisition is anticipated to further bolster the company’s growth trajectory.

Conclusion

The acquisition of DC2 Mercury Cars marks a pivotal step for Mercury Ev-Tech in its quest to dominate the EV market. By integrating Dilip Chhabria’s design capabilities and DC2 Mercury’s expertise, Mercury Ev-Tech is poised to deliver innovative solutions and expand its market presence. Investors and industry observers are optimistic about the company’s long-term prospects, underpinned by its consistent financial performance and strategic initiatives.