FII Backed Penny Stock Jumps 3% As Board Approves Fund Raising of Rs 50 Cr Via QIP

On Wednesday, the shares of Vikas Ecotech opened on the NSE at Rs 2.90 apiece and clocked an intraday high of Rs 2.95% logging in a gain of 3.51% during the morning deals. The rally in stock price came after the company approved fundraising plan of Rs 500 mn via QIP.

At its meeting held on August 29, 2023, the Board of Directors approved size of present trench (being 2nd Tranche of QIP not exceeding to Rs 500 million and the remaining amount of Rs 500 million already raised by the Company. Issue amounting not exceeding to Rs 1000 Million as approved by the members in ExtraOrdinary General Meeting dated February 27, 2023; authorized the opening of the Issue today, i.e. August 29, 2023; and approved the floor price for the Issue, being Rs 2.95 per Equity Share, according to a regulatory filing.

In accordance with the approval of the shareholders accorded through a special resolution passed on February 27, 2023, through extra ordinary general meeting, Vikas Ecotech may at its discretion offer a discount of not more than 5% on the floor price for the issue.
Vikas Ecotech recently saw investments from foreign institutional investors Calypso Global Investment Fund, AG Dynamic Funds Limited, and Vikas Global Fund PCC- Eubilia Capital Partners Fund I. While Vikasa Global Fund PCC- Eubilia Capital Partners Fund I acquired 8,03,00,000 shares and Calypso Global Investment Fund acquired 1,78,00,000 shares, the firm authorised 8,04,00,000 company shares for AG Dynamic Funds. These shares were handed out at a price of Rs 2.80 each, resulting in a net amount of Rs 49.98 crore being invested in the firm by FIIs, as per the data available on BSE.

The company has recently settled its debt totalling Rs. 70 million. As a result, the total bank debt drops to around Rs 650 million and the total bank debt is reduced to about Rs 62 million. Vikas Ecotech aims to become a totally debt-free organisation by the end of FY 2023-2024 as it intends to refund the remaining debt of Rs. 100 million by the end of the current quarter, bringing the total down to roughly Rs. 550 million and clearing the way for it to become debt-free by FY 2023-2024.