Penny stock under Rs 4: Board approves the allotment of 38,03,50,000 shares to shareholders of Shamli Steels on preferential basis via share swap ratio of 20:1

The stock is up by 41 per cent from its 52-week low of Rs 2.82 per share.

Vikas Ecotech Limited has issued 38,03,50,000 new equity shares to acquire Shamli Steels Private Limited. These shares were issued to the public shareholders of Shamli Steels, not to Vikas Ecotech's own promoters. The new Vikas Ecotech shares were offered at Rs 4.20 per share, which includes a premium of Rs 3.20. This share issuance effectively swaps 20 Vikas Ecotech shares for 1 Shamli Steels share.

This share issuance allows Vikas Ecotech to fully acquire Shamli Steels for a total value of Rs 160 crores. The decision to issue these shares was approved by Vikas Ecotech's shareholders through a postal ballot and received in-principle approval from the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE) where Vikas Ecotech's shares are already listed. The new Vikas Ecotech shares will have the same rights as existing shares and will be listed on the BSE and NSE. With this issuance, Vikas Ecotech's issued share capital increases to Rs 1,76,87,06,024 and Shamli Steels becomes a wholly-owned subsidiary of Vikas Ecotech.

Vikas Ecotech Limited (VEL) announced that its recently acquired subsidiary, Vikas Organics (VOPL), has secured their largest-ever export order for vinyl plasticizers worth approximately Rs 165 million. This variable price contract will see regular supplies to the prestigious Yusuf Bin Ahmed Kanoo Group in Saudi Arabia (KSA) over the coming months. The combined VEL and VOPL teams are working together to leverage their expertise and existing export experience in the US and KSA to further strengthen their international presence. Additionally, VEL is significantly upgrading VOPL's manufacturing facilities in Daman to streamline production processes, increase capacity, and enable the creation of new plasticizer variants beyond their current offerings. This expansion aims to solidify VEL's position as a key player in the global plasticizer market.

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Vikas Ecotech, a leading manufacturer of specialty chemicals and polymers in Delhi, caters to a wide range of industries with stabilizers, plasticisers, and other additives. They are a unique player in the global market, being the only Indian manufacturer of organotin (a key stabilizer) with in-house R&D, and are constantly expanding through acquisitions, like a recent plasticizer business and a steel company for infrastructure projects. Vikas Ecotech also includes Vikas Organics, a well-established plasticizer producer with a strong domestic and international presence.

On Saturday, shares of Vikas Ecotech Ltd gained 1.53 per cent to an intraday high of Rs 3.98 per share from its previous closing of Rs 3.92. The company has a market cap of Rs 548 crore. The stock’s 52-week high is Rs 5.63 and its 52-week low is Rs 2.82. The stock is up by 41 per cent from its 52-week low of Rs 2.82 per share.  

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

1 comments on article "Penny stock under Rs 4: Board approves the allotment of 38,03,50,000 shares to shareholders of Shamli Steels on preferential basis via share swap ratio of 20:1"

Shikhar parakh

अगर विकास इकोटेक पर इन्वेस्टर सही तरीके से ध्यान दे तो इसका भाव कुछ ही दिन मे 500 रस होंजाएगा

5/22/2024 8:59 AM

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