Vikas Ecotech, a leading provider of high-end specialty chemicals, has announced that the board has approved Qualified Institutional Placement (QIP). It is a method wherein a firm issue shares to the public without going through regulatory compliance.
The issue amounting not exceeding to Rs 100 crore was approved by the board at an extra-ordinary general meeting in February, according to an exchange filing. Under the first trench, the company will raise an amount not exceeding Rs 50 crore, the company said in an exchange filing on Thursday. The remaining amount of Rs 50 crore will be raised through second/subsequent tranches, if any, it added.
"Approved the floor price for the issue, being Rs 2.92 per equity share, based on the pricing formula as prescribed under the SEBI Regulations," it said.
Earlier, the Delhi-based firm had released its quarterly earnings for the March 2023 period. It posted net sales at Rs 57.20 crore. In the corresponding period of previous financial year, the company's net sales was 55.59 crore. The net profit increased by 8 per cent to Rs 3.5 crore.
It also cut its debt significantly last month as part of debt-reduction plan and aims to become a debt-free by the end of the financial year 2023-24. Its R&D Division is a Department of Scientific & Industrial Research (DSIR) recognised center of the Ministry of Science & Technology.
The firm operates in the specialty chemical industry. It 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.