Specialty Chemical Stock Jumps 3% On Fund Raising Approval of Rs 34 Cr

Small cap company Vikas EcoTech opened today on the BSE 2.01% higher at Rs 3.04 as the Board of Directors of the company approved fundraise via issuance of preferential allotment to promoters. In its regularly scheduled meeting on Thursday, the small-cap board declared a fundraising not to exceed Rs 34 crore by the issue of new warrants on a preferential basis. The price per equity share for the preferential issuance has been set at Rs 3.40.

The Board of Directors have approved "to allot up to 10,00,00,000 (Ten Crores only) Compulsorily Convertible Warrants ('Warrants'), for cash, to Mr. Vikas Garg, Promoter and Managing Director of the Company, who signified his intent in writing to infuse funds for Company's growth, on preferential basis at an issue price of Rs. 3.40/- (Rupees Three and Forty Paisa Only) per Warrant, subject to shareholders' and other statutory/regulatory approvals. aggregating amount of up to Rs. 340 Millions (the issue).

Mr. Vikas Garg, Promoter and Managing Director of the Company shall be entitled to get these warrants converted into equal number of Equity Share of Re. 1/- of the Company by paying the full issue price of Rs. 3.40/- per Warrant/Equity Share of Re. 1/- each (including a premium of Rs. 2.40/- per Equity Shares) within 18 months from the date of warrants allotment," said Vikas EcoTech in a stock exchange filing.

The Board has also approved increasing the authorized share capital of the company to Rs. 200 crores, to accommodate the present and future fund raising, according to a regulatory filing.

Vikas EcoTech shares made a 52-week-high of Rs 4.13 on (21/10/2022) and a 52-week-low of Rs 2.38 on (28/03/2023), indicating that at the current share price of Rs 3.04, the stock is trading 27.73% above the 1 year low and 26.39% below the 1 year high. During Q1FY24, Vikas EcoTech reported promoters shareholding of 7.85%, FIIs stake of 15.18%, and public stake of 76.98%.