On Thursday, August 31, 2023, the company board of Vikas EcoTech will meet to issue securities, convertible instruments on a preferential basis for an amount not more than Rs 35 crore.
On Monday, shares of Vikas EcoTech went up about 7% before a meeting of the board of directors later this week to talk about giving preferred shares to the company’s founders. Saturday, the company told the stock market about the same thing.
In a report with the stock exchange, the company said that its board will meet on Thursday, August 31, 2023, to give securities and convertible instruments to the company’s founder, Vikas Garg, in cash, at a premium, for an amount not to exceed Rs 35 crore.
The company board will also think about raising the company’s approved capital and making changes to the company’s memorandum of association (MoA), the file said.
Monday, after the news came out, shares of Vikas EcoTech went up by about 7%, to Rs 3.05, before giving up some of those gains. The total value of the company on the market was close to Rs 350 crore. The last time the stock was traded, on Friday, it closed at Rs 2.86.
Year-on-year (YoY), Vikas EcoTech’s net profit from business, which was Rs 1.55 crore in the June 2023 quarter, went up by a small amount. In the same quarter last year, the company made a net profit of Rs 1.46 crore.
Vikas EcoTech is also paying down its debt to get out of debt. The company has paid back Rs 7 crore so that it only owes Rs 65 crore to the bank. The company’s bank debt has gone down a lot since its peak of Rs 96.2 crore. The company wants to be completely debt-free by the end of the current financial year.
Vikas Ecotech, which is based in New Delhi, is in the business of making specialty polymers that are used in industries like power, building, packaging, automobile, and more. The company had just started raising money through approved institutional placement, and it was also getting rid of its debt at the same time.