Vikas Ecotech shares extend gains, jump 10% today as company enters green infra space

Shares of Vikas Ecotech Ltd extended their gains for the second session and the stock rose 10 per cent during the trading session on Thursday after the company announced it had ventured into green and eco-friendly infrastructure development projects. The company informed about the same via an exchange filing.

Vikas Ecotech has ventured into green-Enviro-friendly infrastructure development projects in collaboration with Nice Apartment Constructions, a company engaged in real estate development of commercial and residential projects in Delhi-NCR, the company said in the filing.

Vikas Ecotech has entered into a collaboration arrangement wherein it will be including 70 per cent of the total project cost as the collaborator. The estimated project cost of targeted projects is about Rs 115 crore, including the cost of lands as well as the costs to be incurred for the construction and development of commercial buildings at the locations in Gurugram, it added.

Following the announcement, shares of Vikas Ecotech surged about 10 per cent, commanding a market capitalization of close to 285 crore on Thursday. The stock has gained about 18 per cent in the last one week, while it has surged about 160 per cent in the last two years.
 

Vikas Ecotech has induced Rs 400 crore during April 2023 in lieu of the payments accrued towards the land parcels acquired via auctions in this first-ever project being undertaken under a collaboration, the remaining contribution of Rs 40 crore will be induced at appropriate stages in the project development, the company said.

Earlier to this, Vikas Ecotech had announced a payment of debt worth Rs 5.22 crore, reducing the company's total amount of bank debt to Rs 79.13 crore and the overall bank debt to Rs 90.87 crore. Vikas Ecotech is a provider of high-end specialty chemicals and intends to become debt-free by the end of the financial year 2023-24.

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