Vikas Ecotech, a leading provider of high-end specialty chemicals, announced that its Board has approved a Qualified Institutional Placement (QIP). It is a method in which a firm shares to the public without ongoing regulatory compliance.
According to exchange filings, the issue of an amount not exceeding Rs 100 crore was approved by the board at an extraordinary general meeting in February. Under the first moat, the company will raise an amount not exceeding Rs 50 crore, the company said in an exchange filing on Thursday. The balance amount of Rs 50 crore will be raised through second or subsequent tranches, if any, it added.
“Based on the pricing formula prescribed under SEBI regulations, the floor price for the issue has been approved as Rs 2.92 per equity share.”
Earlier, the Delhi-based firm released its quarterly earnings for the period March 2023. It registered a net sale of Rs 57.20 crore. The net sales of the company stood at 55.59 crore in the corresponding period of the previous financial year. Net profit increased by 8 percent to Rs.3.5 crore.
It also significantly cut its debt last month as part of its debt reduction plan and aims to become debt-free by the end of financial year 2023-24. Its R&D division is a center recognized by the Department of Scientific and Industrial Research (DSIR), Ministry of Science and Technology.
The firm deals in specialty chemical industry. It supplies its products to a wide variety of industries including agriculture, automotive, cable, electricals, hygiene, healthcare, polymers, packaging, textiles and footwear. As per the shareholding pattern, promoters hold 9.3 per cent stake in the company, while the remaining 90.6 per cent is held by the public.
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