Vikas EcoTech raises Rs 50 crore via QIP route; stock gains

Shares of Vikas EcoTech rose during the early trading session on Monday after the company announced closure of its qualified institutional placement (QIP) on Monday. The recycling company has raised about Rs 50 crore via QIP route, according to the exchange filing.

The fundraising committee which met on Monday approved the closure of issue on the same day, June 12 and determined the issue price at Rs 2.80 apiece, a discount of around 4 per cent compared to its floor price of Rs 2.92 per share, the company's exchange filing said.

The company has allotted a total of 17.85 crore equity shares to eligible qualified institutional buyers at the given issue price, amounting to Rs 49.98 crore. The issue price of QIP is at a discount of more than 5 per cent from its previous close at Rs 2.96.

The company has allotted 8.04 crore equity shares, or 45.04 per cent, of the issue to AG Dynamic Funds, while 8.03 crore equity shares, or 44.99 per cent, of the issue is allotted to Vikasa Global Fund PCC- Eubilia Capital Partners Fund-I. The remaining 1.78 crore equity shares, 9.97 per cent, of the issue has gone to Calypso Global Investment Fund.

Shares of Vikas EcoTech rose 6 per cent to Rs 3.54 on Monday and the company commanded a total market capitalization of more than Rs 285 crore. The stock has more than tripled in the last three years.

Vikas EcoTech is eyeing to raise Rs 100 crore via the QIP route and it was the first tranche of fundraising. The company will launch the subsequent tranche later on, it said in the earlier exchange filing. The funds mobilized via QIP route will be utilised to expand its business and fund working capital requirement, it added.

Vikas Ecotech is expanding its business portfolio by manufacturing steel pipes and MDPE (medium-density polyethene) pipes. Last month, the company forayed into the real estate sector for the development of commercial and residential projects in Gurugram, Haryana.

The New Delhi-based company is engaged in the business of specialty polymers for applications in sectors like electrical, infrastructure, packaging, and automotive, among others.