Penny stock under Rs 5: This micro-cap company acquires 100 per cent Equity of Shamli Steel Pvt Ltd at an enterprise value of Rs 1,60,00,00,000 in a share swap deal – know more here!

The stock is up 78 per cent from its 52-week low of Rs 2.38 per share.

Vikas EcoTech Ltd has acquired 100 per cent of Shamli Steel Pvt Ltd, a manufacturer of infrastructural steel, for Rs 160 crore in a share swap deal. Vikas EcoTech has also provided Rs 15 crore upfront working capital assistance and will inject an additional Rs 35-50 crore within the first 6 months of taking over Shamli Steel's operations.

Building on two years of successful infrastructure steel supply in North India, Vikas EcoTech has acquired Shamli Steel Pvt Ltd, a manufacturer with the potential to boost their gross revenue by a staggering Rs 900 crore annually and generate an additional Rs 15-20 crore in profits. This strategic move not only expands Vikas EcoTech's product portfolio but also positions them for significant growth in the infrastructure development sector.

Vikas EcoTech, aiming to gain an edge and unlock broader market potential, is investing Rs 9 crore to significantly boost Shamli Steel's power supply capacity with a new substation. This strategic upgrade is expected to skyrocket Shamli's gross margins by 50-60 per cent, not only strengthening its regional presence but also opening doors to adjacent markets. This aggressive move paves the way for faster growth, improved economies, and even better commercial triumphs for Vikas EcoTech.  

About Shamli Steel Pvt Ltd – The company is an ISO-certified manufacturer of steel bars and billets in Shamli, India and boasts a 2.5 Lac MT yearly production capacity for TMT bars, CRS bars, MS rounds, and MS billets. Their state-of-the-art facility, licensed for Thermex quenched steel production, delivers bars with superior mechanical properties across various grades and sizes. Catering to renowned clients like Delhi Metro and Dalmia Cement, Shamli Steel has achieved consistent growth, reaching Rs 300 crore in FY 2022-23 and maintaining a 10 per cent CAGR for the past three years.

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.

Earlier the company received its first patent, awarded for groundbreaking "smart conjugated polymer nanocomposites." This novel technology, designed for superior corrosion protection in harsh saline environments, encases nano-sized particles within a custom-engineered matrix. These "smart" coatings offer key advantages over traditional paints: they're environmentally friendly (VOC-free), self-healing for lasting protection, and outperform in demanding industries like infrastructure, marine, and oil & gas. As the sole Indian manufacturer of Organotin stabilizers and with expertise in Plasticizer production.

On Tuesday, shares of Vikas EcoTech Ltd gained 2.46 per cent to Rs 4.16 per share from its previous closing of Rs 4.06 with an intraday high of Rs 4.24 and an intraday low of Rs 4.10. The stock’s 52-week high is Rs 5.09 and its 52-week low is Rs 2.38. The stock is up 78 per cent from its 52-week low of Rs 2.38 per share.