Small-cap stock below ₹5: Vikas Ecotech Ltd has declared to become a debt-free company by the end of current financial year 2023-24. In its latest exchange filing, the small-cap company has informed Indian stock market that it has paid up to ₹101.20 crore band debt from its peak and now just ₹60 crore band debt now left to be repaid. The company went on to add that it would repay an additional ₹10 crore by end of second quarter of the current financial year.

Informing Indian bourses about the debt repayment, the small-cap stock below ₹5 said, “In terms of Regulation 30 of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, we would like to update you on the captioned subject that the Company has paid back another Rs. 50 Million Approx. ( ₹5 crore), taking the total amount of bank-debt down to Rs. 600 Million Approx. ( ₹60 crore) and the overall bank-debt reduction of Rs. 1012 Million ( ₹101.20 crore) till date from the peak."

Mauritius-based FII backed company went on to add, “It may please further be noted that post the current Repayment, the Company intends to payback additional Rs. 100 Million ( ₹10 crore) before the close of this quarter, bringing down the debt levels to ₹500 Million Approx. ( ₹50 crore), paving the way towards becoming a 'ZERO Debt Company' within F.Y.2023-24."

VIKAS ECOTECH More Information

The penny stock below ₹5 has set a goal for becoming a 100 per cent Debt Free entity within FY 2023-2024 under Debt Reduction Program, on persistence and support extended by the promoters of the Company. You are requested to take the information on record and oblige.

FII-backed company

Recently, Mauritius-based foreign institutional investor AG Dynamic Funds Limited bought stake in this small-cap company. The stake buy was in line with the fund raise drive of Vikas Ecotech Ltd where the small-cap company allotted fresh equities to AG Dynamic Funds Limited and two other FIIs. Other two FIIs were Vikasa Global Fund PCC- Eubilia Capital Partners Fund I and Calypso Global Investment Fund.

The small-cap company had informed BSE that fund raise committee of the company approved 8,04,00,000 company shares to the Mauritius-headquartered FII whereas 8,03,00,000 shares were allotted to Vikasa Global Fund PCC- Eubilia Capital Partners Fund I. The fund raise committee allotted 1,78,00,000 shares to Calypso Global Investment Fund. These shares were allotted at a price of ₹2.80 apiece. This means net fund raised from these FII investment in the company was ₹49.98 crore. Out of these ₹49.98 crore, AG Dynamics Funds Limited bought this penny stock worth ₹22,51,20,000 or around ₹22.51 crore.

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