Eimco Elecon Shares Surge After Vijay Kedia Acquires Stake — All About The Company
The rally in Eimco Elecon comes on the back of ace investor Vijay Kedia acquiring nearly 1% stake in the company through an open market transaction.
Shares of Eimco Elecon Ltd., a mining and construction equipment manufacturer, are trading with gains of more than 5% on Wednesday's trade after a Vijay Kedia-backed firm acquired stake in the company.
The stock is currently trading at Rs 2,040, reaching an intraday high of Rs 2,158. Over a year-to-date period, the stock has remained largely flat while correcting more than 28% in last 12 months.
The rally in Eimco Elecon comes on the back of ace investor Vijay Kedia acquiring nearly 1% stake in the company through an open market transaction.
According to exchange data, Kedia Securities Pvt. Ltd. purchased 57,441 equity shares of Eimco Elecon at an average price of Rs 1,906 per share. The value of the total deal was around Rs 10 crore.
Vijay Kedia is an ace investor who is known for picking small-sized companies with large aspirations and big market opportunities.
In the past, Kedia has made fortunes with his stake in companies like Atul Auto, Punjab Tractors, Aegis Logistics and ACC.
What Is Eimco Elecon All About?
Eimco Elecon is a manufacturer of underground mining and construction equipment. The company, which has a market capitalisation of just over Rs 1,100 crore, is headquartered in Gujarat, where it also operates its primary manufacturing facility on Anand-Sojitra Road.
Eimco Elecon serves coal and metal mining customers along with the larger infra players in India and overseas. The stock currently trades with a relative strength index of 42, which suggests neutral market sentiment.
Recent developments in the company include its promoter entity Tamrock selling its entire 24.68% stake via offer for sale on September and seeking reclassification to a public shareholder, as part of its portfolio restructuring.
Apart from Tamrock, some of the major promoters in Eimco Elecon includes Aakaaish Investments Pvt. Ltd. (24.91%) and Elecon Engineering Ltd. (16.62%).
