Vikas EcoTech shares jump 10% as company raises funds via QIP

Shares of Vikas EcoTech rose sharply during the early trading session on Thursday as the company board approved the second tranche of qualified institutional placement (QIP) to raise Rs 50 crore. The company informed about the completion of QIP through an exchange filing.

The company board determined and approved allotment of 16,12,80,000 equity shares at the issue price at Rs 3.10 per equity share to be allotted to the eligible qualified institutional buyers in the present tranche, while the floor price for the issue was fixed at Rs 2.95 apiece, the company said in the exchange filing.

The company has issued 5.5 crore shares, or 34.10 per cent, of the issue to Radiant Global Fund, while Forbes EMF has got more than 5.31 crore, or 32.96 per cent, of the issue. Remaining 5.31 crore shares or 32.94 per cent, shares have been allotted at Minerva Ventures Fund, the filing added further.

Following the announcement, shares of Vikas EcoTech surged about 10 per cent to Rs 4.42 on Thursday, commanding a total market capitalization of close to Rs 500 crore. The scrip had settled at Rs 4.03 in the previous trading session. The stock has gained about 50 per cent in the last one month.

This was the second tranche of fundraising via the QIP route as the remaining amount of Rs 50 crore was already raised by the company in June this year. The resolution to raise Rs 100 crore via QIP route was approved by shareholders in its extraordinary general meeting held in February 2023.

Earlier in August, the company announced that its board is scheduled to meet on Thursday, August 31, 2023 to issue securities, convertible instruments on preferential basis to Vikas Garg, the promoter of the company in cash, at premium, for an amount not exceeding Rs 35 crore.

The New Delhi-based Vikas Ecotech is engaged in the business of specialty polymers for applications in sectors like electrical, infrastructure, packaging, and automotive, among others. The company had recently launched funds through qualified institutional placement, while also reducing debt from its books.


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