Shares of 63 Moons Technologies Ltd. experienced an 11% surge in Friday's trading session, reaching a high of Rs 847.05 on the BSE. This significant gain extends a six-session rally for the stock, accumulating a total increase of 34% over the period.
Court Order Fuels Rally
The latest uptick follows a crucial development where the MPID Court in Mumbai ordered the cancellation of attachment of the company's assets. This decision, subject to specific conditions, overturns an earlier notification from September 19, 2018, which had frozen the company's assets.
The company confirmed this in a filing to BSE on Thursday, stating, "The MPID Court, Mumbai, has allowed one Applications filed by 63 moons and ordered cancellation of attachment of assets of the company attached under Notification dated 19.09.2018 subject to the conditions laid in the order for effecting the Scheme. Some more release are expected in near future to bring final OTS for execution."
MOFSL Issues Buy Call
In response to these positive developments, Motilal Oswal Financial Services (MOFSL) has issued a positional 'Buy' call on 63 Moons Technologies shares, setting a target price of Rs 910 per share, according to a Bloomberg report.
Background: NSEL Settlement Scheme
This fresh development builds upon the Mumbai bench of the National Company Law Tribunal (NCLT) having approved a scheme of arrangement in November of the previous year. This scheme involved National Spot Exchange Ltd (NSEL), a subsidiary of 63 Moons Technologies, and its 5,682 traders.
The settlement plan outlined the payment of Rs 1,950 crore to the 5,682 traders, proportional to their outstanding amounts as of July 31, 2024. This payment was contingent upon the closure of legal cases against the 63 Moons group and the assignment of all traders' rights to the company.
Historically, in August 2013, NSEL, with the support of 63 Moons, had already disbursed approximately Rs 179 crore to 7,053 smaller traders who had outstanding amounts less than Rs 10 lakh.