On Monday, a chemical stock jumped 2 percent after the acquisition of 100 percent stakes in a polymeric plasticizer manufacturing company.
With a market capitalization of Rs 609.39 crore, Vikas EcoTech Ltd.’s stock price rose by 3 percent from its previous close of Rs 4.64 per share to an intraday high of Rs 4.85 per share.
Vikas Ecotech Ltd. acquired 100 percent stake in the Polymeric Plasticizer Manufacturing Company, Vikas Organics Pvt Ltd., for Rs 27 crore. The newly acquired facility commenced operation after the deal.
The materials produced by Vikas Organics Pvt. Ltd. align with the portfolio of the acquirer company. Over the last 20 years, the company has been catering to a wide range of industries, including electrical cable insulation industries, sheathing compounds, luggage industries, and packaging industries.
With this acquisition, the company enhances its range of products, viz., Di-Octyl Phthalate (DOP) Di-Ethyl Phthalate (DEP), Di-Octyl Adipate (DOA) Di-Butyl Phthalate (DBP), Di-Methyl Phthalate (DMP), Di-Butyl Maleate (DBM) Di-Octyl Maleate (DOM). Furthermore, the company is also on to produce Diisononyl Phthalate (DINP), Butyl Acetate (BA), and Dioctyl Terephthalate (DOT) through the exchange of technical expertise between the firms within 6-12 months.
Additionally, Rs 15 crore will be invested by the company towards the expansion, and Rs 30 crore will be induced towards working capital requirements, for a total investment of Rs 75 crore.
It also plans to expand and alter the manufacturing facility located in Daman to produce newer and more modern materials, viz., halogen-free plasticizers, phthalate-free plasticizers, and food-grade plasticizers, for a host of vinyl applications.
The revenue from operations of the company decreased by 39 percent, from Rs 111.32 crore in Q3 FY23 to Rs 68.46 crore in Q3 FY24. Similarly, net profits also decreased by 55 percent, from Rs 2.74 crore to Rs 1.23 crore in the same period.
The promoter of the company holds a 6.87 percent stake, followed by 83.71 percent by the public and the remaining 9.42 percent by foreign institutional investors.
Vikas Ecotech Ltd. is an Indian-based company located in New Delhi engaged in the business of specialty polymers, specialty additives, and chemicals for the plastics & rubber industries. It is the only manufacturer of organotin in India with in house research and development facilities. The company has a global presence across 20 countries
Written By Praveen R
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