Major Recycling Vikas Ecotech Allots 38 Crore Equity Shares Preferentially | View Important Information Here
New Delhi: The board of Delhi-based recycling giant Vikas Ecotech has notified exchanges that the company’s current shareholders of Shamli Steels Private Limited would have preference when it comes to the issuance and allocation of 38,03,50,000 equity shares with a face value of Rs 1. The equity shares were allocated at an issue price of Rs 4.20 per equity share, per an exchange filing. This also contains a Rs. 3.20 premium.
In order to acquire a 100% stake in Shamli Steels Private Limited at an enterprise value of Rs 160 crores, the company stated in a statement that it would “issue equity shares on a 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 Shamli Steels Private Limited.”
Through a share exchange agreement, the business had earlier in January purchased Shamli Steel for an enterprise value of Rs 160 crore.
With the final payment of Rs 270 million, Vikas Ecotech Limited has successfully acquired a 100% stake in M/s Vikas Organics Pvt. Ltd., a company that manufactures polymeric plasticizers. This completes the payment of the INR 320 million total sale consideration.
The company also announced that it will invest an additional Rs 150 million in the plant’s expansion and modifications and that it will then require an additional Rs 300 million or so in working capital for the new product additions, bringing the total investment to Rs 750 million.
