Vikas Ecotech Secures Rs 225 Mn Order Deal, Aims To Hit Rs 1000 Mn Revenue

On Friday, Vikas Ecotech Limited received orders for specialty polymer compounds totalling around Rs 225 million. At the latest, on February 15, 2023, these orders will be fulfilled during the next 30 to 45 days. With these orders from the specialty polymer compounds business vertical, the firm will almost certainly contribute Rs 1000 million to revenue in the current fiscal year. Looking ahead, the company anticipates another wave of order inflow that will capitalise on the forthcoming seasonal export period, which runs from January to March 2024.

Vikas Ecotech said in a stock exchange filing that its technical team as a long term strategy has invested valuable time and energies developing technically enhanced, better efficient and custom tailored grades offering maximum efficacy along-with best possible cost to performance preposition for its end users and has successfully developed new better grades of specialty compounds which have been tested and approved for commercial scale application, some of which have been patented by the company and in return these relentless efforts and technical edge will help the company achieving the targeted Rs 1500 Million from its specialty compounds business during this financial year.

By all means, the company is adhering to its objective to grow its specialty polymer compounds and chemicals business. In an all-cash deal, the company recently acquired 100% of a plasticizer manufacturing business valued at approximately Rs 270 million. The deal is expected to be completed and will generate an additional revenue of approximately Rs 2000 million per year for the first year. This revenue will be further expanded by increasing the production capacity at the newly acquired plant.

In a separate regulatory filing, Vikas Ecotech said, "In furtherance to our communication dated November 1, 2023 and December 6, 2023, w.r.t. to allotment of 10,00,00,000 (Ten Crores) fully Convertible Warrants ('Warrants') to Mr. Vikas Garg, Promoter and Managing Director of the Company and conversion of 3,00,00,000 warrants into Equity post receipt of amount being 75% of the issue price per warrant i.e. Rs. 7,65,00,000 respectively.

In terms of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that the Board of Directors of the Company in their meeting held on today i.e Thursday, December 7, 2023, inter-alia, considered and approved the allotment of conversion of 3,50,00,000 warrants into 3,50,00,000 Equity shares of face value of Re. 1/- each, to 'Mr. Vikas Garg, Promoter and Managing Director', on preferential basis, upon receipt of balance amount aggregating to Rs. 8,92,50,000/- (Rupees Eight Crores Ninety-Two Lakhs and Fifty Thousand only) at the rate of Rs. 2.55 (Rupees Two and Fifty-Five Paisa Only) per warrant (being 75% of the issue price per warrant) from the allottee pursuant to the exercise of his right of conversion into equity shares in accordance with the provisions of SEBI (ICDR) Regulations."

Following member approval, these warrants were preferentially issued to Mr. Vikas Garg, the company's promoter and managing director, at an issue price of Rs. 3.40/-per warrant. In exchange for payment of Rs. 0.85 per warrant, or 25% of the issue price, warrant holders are entitled to have their warrants converted into an equal number of equity shares of the company by paying the remaining 75%, or Rs. 2.55/-, within 18 months of the warrants' date of allotment.

As a result of the latest discussion on warrants and equity share allocation, the company's issued and paid-up capital has grown to Rs 135,33,56,024/-, with each of the 135,33,56,024/- equity shares valued at Re. 1.