Promoter and Managing Director of Vikas Ecotech Ltd (VEL) Vikas Garg has sold 1,13,79,144 equity shares at a price of Rs14.01 per share, amounting to Rs.15.94cr on November 16, 2018, to raise funds for an upcoming inorganic growth opportunity.
The funds raised will be utilized by the company in the form of a zero-interest, unsecured loan.
As per the company's filing with the exchanges, VEL is currently exploring a strategic inorganic growth opportunity for the production of 2-EHTG as well as other asset purchases.
The strategic option being explored would significantly reduce the lead time of its primary product -- Organotins -- to the market by ensuring raw material security.
The share sale by the promoter has been undertaken to provide the company with interim funding to explore the said growth opportunity.
In another news, Vikas Ecotech released its results for Q2FY19, and the company, for the first time, has stated the standalone financials of only its specialty chemicals business, which would henceforth remain in VEL. VEL received approval from the National Company Law Tribunal (NCLT) for de-merger of its high-volume trading and recycled compounds business into Vikas Multicorp Ltd on November 16, 2018.
Vikas Ecotech share price is currently trading at Rs13.12, down 6.3%, or Rs0.88, from its previous close of Rs14 on the BSE.