Penny stock below ₹5: Vikas Ecotech stock rallies 5% as company plans to raise ₹200 crore via QIP, FCCB, rights issue | Stock Market News
Source: Live Mint
Shares of Vikas Ecotech Ltd rose by 5.03 per cent, reaching an intraday high of ₹3.34 per share compared to its previous closing of ₹3.18. The stock’s 52-week range spans a high of ₹5.63 and a low of ₹3.05.
The company conducted a meeting on Wednesday, January 1, 2025, at its Registered Office in Delhi. Key decisions included the approval of raising funds up to ₹200 crore through various channels such as QIP, FCCB, public offerings, or rights issues to drive future growth. Additionally, the meeting sanctioned an increase in the company’s Authorized Share Capital from ₹200 crore to ₹235 crore, requiring an amendment to Clause V of its Memorandum of Association.
The company also announced that its Managing Director, Vikas Garg, will step down from his position effective December 31, 2024.
“1, Vikas Garg, hereby formally resign from my position as Managing Director, as well as from my roles as Chairman/member of various Board Committees, effective at the close of business hours on December 31, 2024. This decision is part of a restructuring of roles within the promoter group entities,” Garg said in a letter.
About the company
Vikas Ecotech, a Delhi-based producer of specialty chemicals and polymers, serves diverse industries with its range of stabilizers, plasticizers, and additives. Distinguishing itself in the global market, it is the only Indian company manufacturing organotin stabilizers, backed by in-house R&D capabilities. The company is actively growing through strategic acquisitions, including a plasticizer business and a steel company to support infrastructure projects.
As per the quarterly results, net sales surged by 47 per cent to ₹89.23 crore, while net profit rose by 61 per cent to ₹10.38 crore in Q2FY25 compared to Q2FY24. For the half-yearly results, net sales grew by 61 per cent to ₹190.29 crore, and net profit soared by 311 per cent to ₹13.23 crore in H1FY25 compared to H1FY24.
The company has a market capitalization of ₹593 crore. The stock has risen by 9.51 per cent from its 52-week low of ₹3.05 per share. This penny stock is worth monitoring for investors.
