Penny stock under Rs 5 likely to raise funds up to Rs 35,00,00,000 after debt reduction programme!
The stock is trading at 1.14 times its book value.
Vikas Ecotech Ltd informed that a meeting of the Board of Directors of the Company shall be convened on Thursday, August 31, 2023, inter-alia, to transact the following businesses:
1) To issue securities and convertible instruments on a preferential basis to Mr Vikas Garg, promoter of the company, who signified his intent in writing to subscribe additional equity/convertible instrument/warrants, or any other combination thereof, in cash, at a premium, for an amount not exceeding Rs 35,00,00,000.
2) to increase the authorised capital of the company and consequent alteration in the memorandum of association of the company.
3) to consider and approve any other item(s) with the permission of the chair.
Earlier, the company paid back another Rs 50 lakh, taking its total bank debt down to Rs 6 crore. The company plans to pay back an additional Rs 10 crore by the end of this quarter and become debt-free by FY2023-24. In FY23, the net sales increased by 61.2 per cent to Rs 403 crore and net profit increased by 900 per cent to Rs 10 crore compared to FY22.
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On Friday, shares of Vikas Ecotech Ltd plunged 0.69 per cent to Rs 2.86 per share with an intraday high of Rs 2.88 and an intraday low of Rs 2.84. From 0.19 per share to Rs 2.88 per share, the stock gave multibagger returns of over 1,415 per cent in 16 years. The company has a market cap of Rs 270 crore.
The stock is trading at 1.14 times its book value. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.