Vijay Kedia's strategic investment in Greaves Cotton yields a Rs 10 crore profit in 21 days, with the stock price surging amid EV sector excitement.

Vijay Kedia Invests Rs 25 Cr in Greaves Cotton, Earns Rs 10 Cr Profit in Just 21 Days

Greaves Cotton share price has witnessed a significant rally recently, gaining 56% in just one month. This surge has caught the attention of investors, especially after ace investor Vijay Kedia made a strategic investment of Rs 25 crore in the company. On December 9, Kedia, through Kedia Securities Private Limited, bought 12 lakh shares of Greaves Cotton at an average price of Rs 208.87 per share. With the stock reaching an all-time high of Rs 293.03 on December 30, Kedia’s investment has now grown to Rs 35 crore, earning him a profit of Rs 10 crore in a mere 21 days.

Why Greaves Cotton Shares Are Surging

The remarkable rise in Greaves Cotton’s share price can be attributed to several factors. Firstly, the company’s announcement on December 1 regarding its electric vehicle (EV) arm’s potential Initial Public Offering (IPO) stirred investor interest. The excitement continued to build when Greaves Electric Mobility Limited (GEML), a subsidiary of Greaves Cotton, filed its draft red herring prospectus (DRHP) with SEBI. The company is looking to raise Rs 1,000 crore through an IPO, which has further fueled optimism in the market.

GEML is behind popular electric vehicle brands such as Ampere, Eltra, and Ele, and its move toward going public has been seen as a significant growth opportunity. The IPO consists of a fresh issue of equity shares worth Rs 1,000 crore, along with an offer-for-sale of shares from Greaves Cotton and Abdul Latif Jameel Green Mobility Solutions DMCC.

Greaves Cotton Share Price Movement

As of December 30, Greaves Cotton shares opened at Rs 288.70, showing a gap-up from its previous close of Rs 281.83. The stock surged to an all-time high of Rs 293.03 but then experienced a slight pullback due to profit booking. By 12:10 PM, the shares were trading at Rs 276.60, down 1.86% from the day’s high. Despite this dip, the stock’s performance over the past month has been impressive, showing a strong upward momentum driven by positive market sentiment and the company’s promising prospects in the EV sector.

Investor Sentiment and Future Outlook

The rally in Greaves Cotton’s stock price is a clear reflection of growing investor confidence, particularly following the news surrounding its EV business. Investors are optimistic about the company’s future, with many considering the stock as a promising bet in the rapidly expanding electric vehicle market.

Vijay Kedia’s investment is a strong endorsement of Greaves Cotton’s growth potential. With the IPO of Greaves Electric Mobility on the horizon, the company is well-positioned to capitalize on the EV boom, and Vijay Kedia’s success story serves as a reminder of the value that long-term investors can find in stocks with strong fundamentals and strategic growth prospects.

Key Points:

  • Vijay Kedia invested Rs 25 crore in Greaves Cotton on December 9, 2024, buying 12 lakh shares at Rs 208.87 each.
  • The stock has surged by 56% in the last month, reaching a high of Rs 293.03 on December 30.
  • Greaves Electric Mobility, a subsidiary of Greaves Cotton, is planning an IPO to raise Rs 1,000 crore.
  • Investor sentiment is strong, and the future outlook for the company remains positive with its focus on electric vehicles.

This impressive rise in Greaves Cotton’s share price highlights the growing interest in stocks with exposure to the electric vehicle market. With the company’s solid performance and positive outlook, it’s clear why investors, including high-profile figures like Vijay Kedia, are betting on its future success.

Conclusion:

Greaves Cotton’s strong market performance and the promising future of its EV business make it an appealing investment opportunity. The company’s shares have seen significant growth, and with the upcoming IPO of Greaves Electric Mobility, investors are hopeful that the upward trajectory will continue. As seen with Vijay Kedia’s recent investment and profit, there is strong potential in this stock. However, like any investment, it’s essential to evaluate your own risk tolerance and market conditions before making any decisions.

Greaves Cotton’s focus on the electric vehicle market and its solid financial position provide a promising outlook for the future. Investors looking for exposure to the growing EV sector should keep an eye on this stock as it continues to gain momentum.

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