Vikas Ecotech Allots 38 Crore Equity Shares On Preferential Basis; Check Key Details Here

Delhi-based Vikas Ecotech has informed exchanges that its board has issued and allotted 38,03,50,000 equity shares of the company having a face value of Rs. 1 on a preferential basis to the existing shareholders of Shamli Steels Private Limited. According to an exchange filing, the equity shares have been allotted at an issue price of Rs 4.20 per equity share. This includes a premium of Rs 3.20.

The company said in a statement, that "Issue of equity shares on preferential issue basis... to the existing shareholders of Shamli Steels Private Limited... to swap the shares in the ratio of 20:1 (i.e. every 20 (Twenty) Equity Share of Vikas Ecotech Limited is being exchanged for one (1) Equity Share) of the Shamli Steels Private Limited, towards the acquisition of 100% stake in Shamli Steels Private Limited, at the enterprise value of Rs 160 crores."

Earlier in January, the company had acquired Shamli Steel at an enterprise value of Rs 160 crore in a share swap deal.

The company also said that it will invest an additional Rs 150 Million towards the expansion and modifications of the plant and thereafter induce an additional Rs 300 million approx. towards Working Capital Requirements in respect to the new additions to the product portfolio, taking the total investment up to Rs 750 Million.

Recently, the company has informed the stock market that it has acquired 100 percent stake in Polymeric Plasticizer Manufacturing Company. Vikas Ecotech Limited has told the stock market that Polymer Plastic Scissor Manufacturing Company will be merged with Vikas Organic Private Limited.

New Delhi-based Vikas Ecotech is engaged in the business of specialty polymers and specialty additives and chemicals for plastics and rubber industries, catering to a wide horizon of applications in agriculture, infrastructure, packaging, electrical, footwear, pharmaceuticals, automotive, medical devices and components and other consumer goods.