Vikas EcoTech shares hit upper circuit after preferential issue, acquisition announcements
Vikas EcoTech announced to acquire 100 per cent equity in plasticizer manufacturing business in an all-cash deal, which is valued at an enterprise value Rs 27 crore.
- Nov 1, 2023,
- Updated Nov 1, 2023 3:51 PM IST
Shares of Vikas EcoTech Ltd hit upper circuit during the trading session Wednesday amid a couple of announcements. The company informed about these updates related to issue of warrants and acquisition through two separate exchange filings with the bourses. Vikas EcoTech has allotted 10 crore fully convertible warrants to the promoter Vikas Garg of the company at an issue price of Rs 3.40 apiece. The allottee needs to pay 25 per cent of the amount for subscription and the remaining 75 per cent amount shall be paid on the conversion of warrants into equity shares. "The above warrants entitle the allottee to apply for and be allotted equal number of equity shares for each warrant held by them on payment of balance 75 per cent of the issue price within 18 months from the date of issue of these warrants," it added the exchange filing. On Tuesday, the company announced to acquire 100 per cent equity in the plasticizer manufacturing business in an all-cash deal, which is valued at an enterprise value Rs 27 crore. The acquisition is targeted to be completed by December 2023, said the company in another exchange filing on Tuesday. Following the updates, shares of Vikas EcoTech hit an upper circuit of 5 per cent to Rs 3.50, commanding a total market capitalization of more than Rs 450 crore. The scrip had settled at Rs 3.34 in the previous trading session on Wednesday. The stock has gained about 30 per cent in the last six months. "The company in the pursuit of broad-basing its business interests via adding newer Products, markets and investments in vivid and vibrant business segments has finalised this acquisition and signed a definitive share purchase agreement to buy 100 per cent equity from its existing shareholders," it added. New Delhi-based Vikas Ecotech is engaged in the business of specialty polymers, additives and chemicals for plastics and rubber industries, catering to a wide horizon of applications in agriculture, infrastructure, packaging, electrical, footwear, automotive, pharmaceuticals, medical devices and components and other consumer goods.
Also read: Fed policy: Rate hike off the table, FOMC meeting outcome likely to be uneventful
Shares of Vikas EcoTech Ltd hit upper circuit during the trading session Wednesday amid a couple of announcements. The company informed about these updates related to issue of warrants and acquisition through two separate exchange filings with the bourses. Vikas EcoTech has allotted 10 crore fully convertible warrants to the promoter Vikas Garg of the company at an issue price of Rs 3.40 apiece. The allottee needs to pay 25 per cent of the amount for subscription and the remaining 75 per cent amount shall be paid on the conversion of warrants into equity shares. "The above warrants entitle the allottee to apply for and be allotted equal number of equity shares for each warrant held by them on payment of balance 75 per cent of the issue price within 18 months from the date of issue of these warrants," it added the exchange filing. On Tuesday, the company announced to acquire 100 per cent equity in the plasticizer manufacturing business in an all-cash deal, which is valued at an enterprise value Rs 27 crore. The acquisition is targeted to be completed by December 2023, said the company in another exchange filing on Tuesday. Following the updates, shares of Vikas EcoTech hit an upper circuit of 5 per cent to Rs 3.50, commanding a total market capitalization of more than Rs 450 crore. The scrip had settled at Rs 3.34 in the previous trading session on Wednesday. The stock has gained about 30 per cent in the last six months. "The company in the pursuit of broad-basing its business interests via adding newer Products, markets and investments in vivid and vibrant business segments has finalised this acquisition and signed a definitive share purchase agreement to buy 100 per cent equity from its existing shareholders," it added. New Delhi-based Vikas Ecotech is engaged in the business of specialty polymers, additives and chemicals for plastics and rubber industries, catering to a wide horizon of applications in agriculture, infrastructure, packaging, electrical, footwear, automotive, pharmaceuticals, medical devices and components and other consumer goods.
Also read: Fed policy: Rate hike off the table, FOMC meeting outcome likely to be uneventful