Recycling Major Vikas Ecotech Allots 38 Crore Equity Shares on Preferential Basis

According to an exchange filing, the equity shares have been allotted at an issue price of Rs 4.20 per equity share. This includes a premium of Rs 3.20.

“Issue of equity shares on preferential issue basis… to the existing shareholders of Shamli Steels Private Limited… to swap the shares in the ratio of 20:1 (i.e. every 20 (Twenty) Equity Share of Vikas Ecotech Limited is being exchanged for one (1) Equity Share) of the Shamli Steels Private Limited, towards the acquisition of 100% stake in Shamli Steels Private Limited, at the enterprise value of Rs 160 crores,” the company said in a statement.

Earlier in January, the company had acquired Shamli Steel at an enterprise value of Rs 160 crore in a share swap deal.

Meanwhile, Vikas Ecotech Limited has completed the process of acquisition of 100 per cent stakes in the Polymeric Plasticizer Manufacturing company M/s Vikas Organics Pvt Ltd with remittance of the final amount of Rs 270 Million, completing the payment of the total sale consideration of INR 320 Million.

The company also said that it will invest an additional Rs 150 Million towards the expansion and modifications of the plant and thereafter induce an additional Rs 300 million approx. towards Working Capital Requirements in respect to the new additions to the product portfolio, taking the total investment up to Rs 750 Million.