What’s new

• Board approved name change to Cosmic Energy & Motors and new objects for EV manufacturing.
• Authorized capital hiked 14x from ₹3.5 cr to ₹50 cr.
• Valuers and merchant banker appointed for proposed acquisition of Cosmic EV Ltd and Cosmet Fleet Ltd and preferential issue.

Why it matters

For a company with ₹11 cr market cap and declining profitability, this is a radical pivot into a capital-intensive sector. The enabling resolutions for up to ₹500 cr in borrowing signal aggressive ambition, but the transformation remains contingent on shareholder and regulatory approvals.

What we’re watching

• Shareholder approval at EGM on July 30.
• Binding agreements for the proposed acquisitions.
• Funding plan for the ₹500 cr borrowing capacity.

The full read

Shashank Traders Limited, a nano-cap trading company with an ₹11 cr market cap and a trailing PAT decline of -54.8%, just approved a transformation plan that would upend its identity. The board will ask shareholders to change the name to Cosmic Energy & Motors Ltd, swap the trading objects for EV manufacturing, raise authorised capital 14-fold from ₹3.5 cr to ₹50 cr, and expand borrowing capacity to ₹500 cr. Valuers and a merchant banker have been appointed to advise on acquiring two EV firms and on a preferential issue. The ambition is enormous for a company with weak fundamentals and a debt/equity of 1.30. But the entire plan is contingent on the July 30 EGM and subsequent regulatory filings. No binding deal exists yet. What changes from here is whether shareholders back the vision and whether the deals close.

Primary source: BSE · NSE