Multibagger penny stock under Rs 5: This micro-cap company successfully completed the process of acquisition of 100 per cent stake in the polymeric plasticizer manufacturing company – details inside
The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 2.38 per share.
Vikas Ecotech Limited announced that the company has successfully completed the process of acquisition of a 100 per cent stake in the polymeric plasticizer manufacturing company Vikas Organics Pvt Ltd with remittance of the final amount of Rs 27 crore, completing the payment of the total sale consideration of Rs 32 crore. The completion of the process of the transfer of ownership. While the company had signed the share purchase agreement earlier this present fiscal year, the newly acquired facility will instantly start contributing to the company's performance numbers.
The materials produced from the newly acquired facility perfectly complement the product portfolio that the company has to offer to the vinyl processing industries that have been customers of the company for more than 2 decades now, while significantly enhancing the range of products offered to the customers from varied application areas including The electrical cable insulation and sheathing compounds, footwear sole compounds along with faux leathers for footwear uppers, cars and furniture upholstery applications including furnishing materials, shower curtains, bags and luggage materials along with clear vinyl films for lamination and packaging applications.
The company has plans suitably to expand and modify the manufacturing facility located at Daman, to produce newer and modern materials including halogen-free plasticizers, phthalate-free plasticizers and food-grade plasticizers for a host of vinyl applications. The company will invest an additional Rs 15 crore towards the expansion and modifications of the plant and thereafter induce an additional Rs 30 crore approx. towards working capital requirements with respect to the new additions to the product portfolio, taking the total investment up to Rs 75 crore.
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Vikas Ecotech Ltd., a New Delhi-based company, manufactures speciality polymers, additives, and chemicals for various industries, including agriculture, infrastructure, packaging, and more. It's the sole Indian producer of Organotin (heat stabilizers for vinyl) with in-house R&D and one of a handful worldwide with expertise in making it from tin metal to the finished product. The company is actively expanding its business and product portfolio, recently acquiring a plasticizer manufacturing business for Rs 27 crore in cash. Vikas Ecotech also entered the infrastructure development market in FY 2021 - 2022, supplying steel to construction companies in northern India. Most recently, it signed an agreement to acquire Shamli Steel Private Limited, a manufacturer of infrastructure steel (bars & raw materials), for Rs 160 crore.
On Friday, shares of Vikas Ecotech Ltd gained 2.52 per cent to an intraday high of Rs 4.89 per share from its previous closing of Rs 4.77. The stock’s 52-week high is Rs 5.63 and its 52-week low is Rs 2.38. The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 2.38 per share.
Vikas Ecotech Ltd. is a New Delhi-based company engaged in the business of speciality polymers & speciality 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.
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