Small-cap stock under ₹5: Penny stock Vikas Ecotech jumps as board approves ₹34 crore fund raise

Small-cap stock under ₹5: The board of directors of this penny stock below ₹5 has approved fund raise via issuance of preferential issue. The small-cap board in its scheduled meeting on Thursday declared fund raise not exceeding ₹34 crore through issuance of fresh warrants on preferential basis. The preferential issue price has been fixed at ₹3.40 per equity share.

After the outbreak of this stock market news, Vikas Ecotech shares witnessed fresh buying interest among Dalal Street bulls in early morning deals. Vikas Ecotech share price today opened upside and went on to hit intraday high of ₹3.05 apiece on NSE, logging near 1.65 per cent rise within few minutes of stock market's opening bell today.

Vikas Ecotech latest news

The penny stock below ₹5 informed Indian stock market bourses about the fund raise approval citing, "In terms of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that the Board of Directors of the Company in their meeting held today i.e. on Thursday, August 31, 2023 at the Registered Office of the Company at 34/1, Vikas Apartments, East Punjabi Bagh, Delhi-110026 inter-alia considered and approved to allot up to 10,00,00,000 (Ten Crores only) Compulsorily Convertible Warrants ('Warrants'), for cash, to Mr. Vikas Garg, Promoter and Managing Director of the Company, who signified his intent in writing to infuse funds for Company’s growth, on preferential basis at an issue price of Rs. 3.40/- (Rupees Three and Forty Paisa Only) per Warrant, subject to shareholders' and other statutory/regulatory approvals. aggregating amount of up to Rs. 340 Millions (the issue)."

"Mr. Vikas Garg, Promoter and Managing Director of the Company shall be entitled to get these warrants converted into equal number of Equity Share of Re. 1/- of the Company by paying the full issue price of Rs. 3.40/- per Warrant/Equity Share of Re. 1/- each (including a premium of Rs. 2.40/- per Equity Shares) within 18 months from the date of warrants allotment," small-cap company added in its exchange communication.

These warrants shall be issued in terms of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018; provisions of the Companies Act, 2013 and rules made thereunder, all other applicable guidelines, rules, regulations and amendments thereof. Further, allotment of Equity Shares consequent to the conversion of these warrants shall be made in compliances with the requirements of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

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