Vikas EcoTech shares rebound after order win, conversion of warrants

Shares of Vikas EcoTech Ltd rebounded 4 per cent from day's low on Friday amid the multiple developments. The company informed about the same through multiple exchange filings with the bourses after-market hours on Thursday and during Friday's trading session.

On Friday, Vikas Ecotech received orders worth Rs 22.5 crore for the specialty polymer compounds, said the company in its filing. These orders will be serviced within the next 30-45 days, latest by February 15, 2023.

"The company will achieve almost Rs 100 crore revenue contribution with these orders from the specialty polymer compounds business vertical in the current fiscal so far and is eyeing at another bout of order inflow tapping into the upcoming seasonal exports period during January March 2024," it added.

In a separate exchange filing, the company informed that its promoter Vikas Garg has converted 3.5 crore convertible warrants into 3.5 crore equity shares after a cumulative payment of Rs 8,92,50,000, Rs 2.55 per warrant or 75 per cent of the issue price to be paid on conversion. The warrants need to be converted into 18 months of allotment.

Following the announcement, shares of Vikas EcoTech rebounded more than 4 per cent to 3.34 apiece from its day's low at Rs 3.21, commanding a total market capitalization of Rs 450 crore. The scrip had settled at Rs 3.34 in the previous trading session on Thursday.

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The company intends to expand the specialty polymer compounds and chemicals by all possible means. The company recently acquired 100 per cent equity of a plasticizer manufacturing business valued at enterprise value of Rs 27 crore in an all-cash deal which will be completed and all set to contribute an additional revenue of more than Rs 200 crore per year.

New Delhi-based Vikas Ecotech is engaged in the business of specialty polymers and specialty additives and chemicals for plastics and rubber industries, catering to a wide horizon of applications in agriculture, infrastructure, packaging, electrical, footwear, pharmaceuticals, automotive, medical devices and components and other consumer goods.

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