Premium specialty chemicals company Vikas Ecotech has informed exchanges that the company has significantly cut its debt in the ongoing quarter of FY24. As par of its debt-reduction plan, the company has paid back Rs 73 million approximately.
With the latest round of payment, the company's total amount of bank-debt now stands reduced to Rs 718 million. It means that it has reduced overall bank-debt of Rs 982 million from the peak level of about Rs 1,700 million till date.
In addition to this, the firm intends to payback additional Rs 170 million in the current quarter ending on June 30, 2023, bringing down the debt levels to Rs 548 million.
Vikas Ecotech is a leading provider of high-end specialty chemicals. The company said that it aims to cut the debt further as it has set a target to become a debt-free by the end of the financial year 2023-24. The repayment takes the company a step ahead towards becoming a ‘ZERO Debt Company’ in 2024.
The company recently raised about Rs 50 crore via Qualified Institutional Placement (QIP) route. Its R&D Division is a Department of Scientific & Industrial Research (DSIR) recognised center of the Ministry of Science & Technology.
The company has also gained approvals and commercial orders from Paragon Polymer and electric bus manufacturer Olectra Greentech for the specialty fire retardant materials.
The New Delhi headquartered company operates in the specialty chemical industry. The company supplies its products to a variety of industries including agriculture, automotives, cables, electricals, hygiene, healthcare, polymers, packaging, textiles and footwear. As per the shareholding patter, promoters hold 9.3 per cent stake in the company while the remaining 90.6 per cent is owned by the public.