Vikas Ecotech ("VEL" or the "Company") Limited to would like to provide the following strategic Update:
Share Sale by Promoters: Mr. Vikas Garg, Promoter and Managing Director of the Company, has sold 1,13,79,144 Equity Shares at a price of Rs. 14.01 amounting to Rs. 15.94 Crores on 16th Nov., 2018 to raise funds for an upcoming inorganic growth opportunity. The funds raised by the promoter will be utilised in the company via zero interest unsecured loan. The company is currently exploring a strategic inorganic growth opportunity for production of 2-EHTG as well as other asset purchases. The strategic option being explored would significantly reduce the lead time of its primary product, 'Organotins' to the market by ensuring raw material security. The share sale by the promoter has been undertaken to provide company with interim funding to explore the said opportunity.
Q2 FY19 - First Quarter of De-merged Financials:
Vikas Ecotech released its Q2 FY19 results on, 14th Nov., 2018 in which, for the first time company stated the standalone financials of only its Speciality Chemicals business which would henceforth remain in VEL.
VEL received approval from the National Company Law Tribunal ("NCLT") for De-merger of its high-volume trading and recycled compounds business into Vikas Multicorp Limited on 6th Nov., 2018. Consequently in compliance with NCLT's order, company came out with standalone financials of only the Speciality chemicals division for Q2 FY19. Also, the results of Q1 FY19 and for whole year FY18 were restated, stating only the standalone numbers. The results of Q2 and H1 of last year FY18, were not restated in the above mentioned Q2 results and represent consolidated numbers of the demerged division and hence are not comparable with the current FY19 numbers.
Shares of Vikas EcoTech Ltd was last trading in BSE at Rs.14 as compared to the previous close of Rs. 14.62. The total number of shares traded during the day was 7692706 in over 2036 trades.
The stock hit an intraday high of Rs. 16.44 and intraday low of 13.54. The net turnover during the day was Rs. 108317086.