Penny stock below Rs 5: This micro-cap company receives first patent for Smart Corrosion Protection Technology – know more here!

The stock is up by 45 per cent from its 52-week low of Rs 2.38 per share.

Vikas Ecotech Limited announces the grant of its first patent for a groundbreaking technology developed by its team. This patent, awarded on December 12, 2023, under the Indian Patents Act 1970, covers a novel method for creating "smart conjugated polymer nanocomposites" designed for exceptional corrosion protection in saline environments.

This innovative technology encapsulates nano-sized calcium carbonate particles within a specifically engineered conjugated copolymer matrix. This unique composition, when blended with bisphenol polyester epoxy, delivers exceptional corrosion inhibition performance.

Compared to traditional paint formulations, these smart nanocomposites offer significant advantages:

• Environmentally Friendly: No volatile organic compounds (VOCs) are released during application, making them a safer and more sustainable solution.
• Superior Protection: Unlike conventional coatings, these nanocomposites continue to protect surfaces even if pinholes or scratches occur, thanks to their "smart" self-healing properties.

This breakthrough technology represents a significant advancement in the field of corrosion protection, particularly in demanding saline environments. Vikas Ecotech's patented nanocomposites offer a promising solution for various industries, including infrastructure, marine, and oil & gas, ensuring long-lasting protection and environmental sustainability.

Vikas Ecotech Ltd, a New Delhi-based company, is a leader in the field of speciality polymers, speciality additives and chemicals for the plastics & rubber industries. Their products cater to a wide range of applications across diverse sectors, including agriculture, infrastructure, packaging, electrical, footwear, pharmaceuticals, automotive, and medical devices.

Notably, Vikas Ecotech is the sole manufacturer of Organotin (Heat Stabilizers) in India, boasting in-house R&D facilities and ranking among a handful of manufacturers globally who possess the expertise to produce this material from the initial tin metal stage to the final product.

To further expand its business and product portfolio, Vikas Ecotech recently acquired a Plasticizer Manufacturing Business for Rs 27 crore. This all-cash deal promises to contribute an additional annual revenue of Rs 200 crore in the first year, with plans to further enhance production capacity at the acquired plant. The company's securities are listed on both the BSE (Scrip Code: 530961) and NSE (Scrip Code: VIKASECO), offering investors access to their growing portfolio and promising future.

Earlier, the company re-paid another Rs 12.3 crore to the bankers as part of its pre-defined debt reduction programme. The company whilst sprinting towards the targeted debt reduction numbers, initiated the process in August-September 2021 and since then the Company has re-paid a total of Rs 118.7 crore to the bankers; thus, reducing the total bank debt from the peak of Rs 161.2 crore approx. to about Rs 4.25 crore currently, making a 74 per cent (approx.) reduction from the peak level.

Furthermore, the company has received orders worth about Rs 22,50,00,000 from various clients for speciality polymer compounds. These orders will be serviced within the next 30-45 days wiz latest by February 15, 2023. The clients are Alert India, Capstan Rubber, Polycab India Limited, International Switchgears Pvt Ltd, Dexter Chem, Arvind Limited, Omega Polymicrons, Relaxo Footwear, Narmada Polymers, KEI Industries Ltd, RMC Switchgears Ltd, Chand Engineering, Tej Shoe Tech and Raghav Lifestyle.

Today, shares of VEL plunged 0.60 per cent to Rs 3.33 per share from its previous closing of Rs 3.35 per share with an intraday high of Rs 3.43 and an intraday low of Rs 3.29. The stock’s 52-week high is Rs 5.09 and its 52-week low is Rs 2.38. The stock is up by 45 per cent from its 52-week low of Rs 2.38 per share.

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