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Business News/ Markets / Stock Markets/  Small-cap penny stock declares rights issue after giving 450% return in 3 years
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Small-cap penny stock declares rights issue after giving 450% return in 3 years

Small-cap company's board considered and approved issuance of rights of amount not exceeding ₹50 crore

Small-cap company board has called for an extra-ordinary general meeting to seek approval of all members for fund raise drive. (MINT)Premium
Small-cap company board has called for an extra-ordinary general meeting to seek approval of all members for fund raise drive. (MINT)

Vikash Ecotech shares are one of those small-cap stocks on Dalal Street that have delivered whopping returns to its shareholders in post-Covid market rebound. In these near three years, this penny stock has surged from around 0.60 apiece to 3.40 per share levels, delivering more than 450 per cent return to its positional shareholders. However, the money making journey doesn't end here only for long term investors. The board of directors of the small-cap company has announced to raise 100 crore through issuance of equity shares, other convertible securities, warrants, bonds, FPO, etc. The small-cap company also considered and approved rights issue worth not exceeding 50 crore.

Informing Indian bourses in regard to fund raise and issuance of rights, Vikas Ecotech Ltd said, "In terms of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that the meeting of the Board of Directors of the Company held on Monday, January 30, 2023 at the Registered Office of the Company at 34/1, Vikas Apartments, East Punjabi Bagh, Delhi-110026, inter-alia, considered and approved: in order to augment the long-term resources and fund organic/inorganic growth opportunities in the area of the company’s operations and adjacencies, raising of funds, subject to all necessary approval, as applicable, by way of a) issuance of equity shares, other convertible securities, warrants and bonds (whether convertible or non-convertible) or any combination thereof through QIP, FCCB, ADRs. GDRs and/or FPO or through any other permissible mode or any combination thereof, for an aggregate amount not exceeding Rs. 100 Crore (Rupees One Hundred Crore) and, b) issuance of equity shares for an aggregate amount not exceeding 50 Crores (Rupees Fifty Crore), by way of a rights issue."

"Further, for the purpose of giving effect to the above, the Board of Directors has also constituted the 'Fund Raising Committee’ and authorized such committee to decide, inter alia, the terms and conditions of the proposed fund-raising including right issue and for allotment of equity shares and/or other convertible securities, pursuant to the proposed issue," Vikas Ecotech added.

The company board has also called for an extra-ordinary general meeting on 27th February 2023 for taking approval of all members as per the provisions of the Companies Act, 2013 and applicable Rules made thereunder.

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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
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Published: 31 Jan 2023, 08:44 AM IST
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