Small Cap Recycling Stock Vikas Ecotech Announces Allotment of Over 38 Cr Shares

Vikas Ecotech Limited has informed the stock market that its Board of Directors meeting was held on Saturday, May 18, in which approval has been given for the allotment of 38.02 crore shares. Vikas Ecotech Company has approved the allotment of these shares at the issue price of Rs 4.20, which is being allotted to non-promoters/public category investors.

Under the share swap model on a preferential basis, these shares are being given to the existing investors of Shamli Steels in the ratio of 20 to one. For 20 shares of Vikas Ecotech Limited, one share of Shamli Steels Private Limited is being given. Vikas Ecotech Limited has decided to acquire a 100% stake in Shamli Steels Private Limited for an enterprise value of Rs 160 crore.

In the special trading session held on Saturday, shares of Vikas Ecotech Ltd surged by 1.27 per cent and reached the level of Rs. 4. The 52-week high level of shares of Vikas Ecotech Limited, a small-cap company with a market cap of about Rs 555 crore, is Rs 5.65 while the 52-week low level is Rs 2.80.

The shares of Vikas Ecotech Limited have given a bumper return of 100 per cent to the investors from the low of 52 weeks. There is a holiday for the stock market on Monday, 20th May, due to voting for the general elections in Mumbai.

Recently, the company has acquired Shamli Steel for Rs 160 crore. It has also infused an initial working capital of Rs 15 crore in Shamli Steel and plans to invest another Rs 35-50 crore over the first 3-6 months after taking over the operations of the plant, according to a regulatory filing. Vikas Ecotech acquired 100 per cent equity of Shamli Steel at an enterprise value of Rs 1600 million (Rs 160 crore) in a share swap deal.

Vikas Ecotech, a leading manufacturer of specialty chemicals and polymers in Delhi, caters to a wide range of industries with stabilizers, plasticisers, and other additives. They are a unique player in the global market, being the only Indian manufacturer of organotin (a key stabilizer) with in-house R&D, and are constantly expanding through acquisitions, like a recent plasticizer business and a steel company for infrastructure projects. Vikas Ecotech also includes Vikas Organics, a well-established plasticizer producer with a strong domestic and international presence.