Penny stock jumps up to 8% after company announced closure of its QIP issue worth ₹ 500 million

This chemical stock jumped 8% in the first half of Thursday after the company announced the outcome for its QIP issue dated 29 Aug 2023. The funds committee has approved multiple decisions on 13 Sep 2023.

Share price of Vikas Ecotech opened at Rs. 4.13 per share and gained almost 8% to reach its intra- day high of Rs. 4.42 per piece. The stock has returned 35% in the last one month and 44.64% in the last six months. 

Share price of Vikas Lifecare also soared almost 8% in today’s trading session.

On 29 Aug 2023, the company announced the opening of its Qualified Institutions Placement (QIP) issue worth Rs. 500 million. Later on 13 Sep 2023, it announced the closure of its QIP issue along with the issue price of Rs. 3.10 per equity share which includes a premium of Rs. 2.10 per equity share and floor price of Rs. 2.95 per equity share.

The company allotted 16.12 crore equity shares at the issue price to the eligible qualified institutional buyers. Radiant Global Fund, Forbes EMF and Minerva Ventures Limited are among the allottees who received more than 5% of the equity shares under the issue.

It has a market capitalization of Rs. 455.91 crore. Comparing its financials on a QoQ basis, the company recorded a total revenue of Rs. 57.7 crore in Q1FY24 which is a decrease of 15.56% from Rs. 68.33 crore in Q4FY23. The net profit for the company has reduced to Rs. 1.55 crore in Q1FY24 which is a fall of 13.41% from Rs. 1.79 crore in Q4FY23.

Vikas Ecotech Limited is a chemical manufacturing company and also offers its products on a global basis. The company was established in 1984 and serves multiple industries including FMCG, electricals, polymers,footwear, textiles and . Vikas manufactures three kinds of products ranging in plastic compounds, additives, and recycled materials.

Written by Bhumika Khandelwal

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