Penny stock under Rs 5: This micro-cap company bags new orders worth Rs 500 million and comes out with debt reduction program!

The company plans of becoming a debt free entity by the end of FY24.

Vikas Ecotech Limited informed in the exchange filing that the company have received an order worth Rs 500 million. The company has successfully garnered orders of more than 1000 Tonnes for the niche grades of Thermoplastic Elastomers (TPE), Thermoplastic Rubber (TPR), Thermoplastic Vulcanizates (TPV), Organotin Heat Stabilizers (MTM), and Flame-Retardant Aluminum Trihydrate (ATH) compounds.

The company has also come out with a debt reduction plan and the company has paid back Rs. 70 million, taking the total amount of bank-debt down to Rs. 650 million and the overall bank-debt reduction till date from the peak to Rs. 962 million. The company has a plan to become a zero-debt company by FY24.

Earlier, the company ventured into the arena of Green-Enviro-friendly Infrastructure Development Projects in collaboration with M/s ARM Estate Projects Pvt Ltd. The estimated project cost of targeted projects is about Rs 500 million, including the cost of lands as well as the costs to be incurred for the Construction and Development of Commercial Buildings at 2 locations in Gurugram, Haryana.

Vikas Ecotech Ltd. is a New Delhi-based company engaged in the business of Specialty Polymers & Specialty Additives and Chemicals for Plastics & Rubbers industries, catering to a wide horizon of applications in Agriculture, Infrastructure, packaging, electrical, footwear, pharmaceuticals, automotive, medical devices and components and other consumer goods.

Disclaimer: The article is for informational purposes only and not investment advice.