Penny stock under Rs 5 to raise funds up to Rs 50,00,00,000 through QIP issue after debt reduction programme!
From 0.19 per share to Rs 2.93 per share, the stock gave multibagger returns of over 1,442.11 per cent in 16 years.
Vikas Ecotech Ltd informed that a meeting of the Board of Directors of the company held on August 29, 2023, has inter alia:
a) Approved size of the present trench (Being the 2nd tranche of QIP not exceeding Rs 50,00,00,000 and the remaining amount of Rs 50,00,00,000 already raised by the company). Issue amounting not exceeding Rs 1,00,00,00,000 as approved by the members in the extraordinary general meeting dated February 27, 2023.
b) Approved and adopted the preliminary placement document dated August 29, 2023, together with the application form in connection with the issue.
c) Authorized the opening of the Issue today, i.e., August 29, 2023.
d) Approved the floor price for the issue, Rs 2.95 per equity share (Floor Price), based on the pricing formula as prescribed under the SEBI ICDR Regulations.
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.
On Wednesday, shares of Vikas Ecotech Ltd surged 2.44 per cent to Rs 2.93 per share from its previous closing of Rs 2.86. From 0.19 per share to Rs 2.93 per share, the stock gave multibagger returns of over 1,442.11 per cent in 16 years. The company has a market cap of Rs 328 crore.
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The stock is trading at 1.15 times its book value. Investors should keep an eye on micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.