With the latest payment of debt, the company's total amount of bank debt stands reduced to Rs 79.13 crore and the overall bank-debt reduction to Rs 90.87 crore. Shares of Vikas Ecotech, smallcap speciality chemical company, were in focus after the company announced its debt reduction and plans to become debt-free in the ongoing financial year 2024. The company informed about the same via an exchange filing on Tuesday. Vikas Ecotech has paid back about Rs 5.22 crore. With the latest payment of debt, the company's total amount of bank debt stands reduced to Rs 79.13 crore and the overall bank-debt reduction to Rs 90.87 crore, the company said in its exchange filing with BSE. Vikas Ecotech is a provider of high-end specialty chemicals. The company said that it aims to cut the debt further as it has set a target to become debt-free by the end of the financial year 2023-24 and the latest round of payment is another step towards its aim.
"It is pertinent to submit that the company goal of 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," the filing added further.
Shares of Vikas Ecotech rallied over about 4 per cent during the trading session on Wednesday, commanding a market cap close to Rs 260 crore. The 'penny stock' has surged about 130 per cent in the last two years.
The New Delhi headquartered company operates in the specialty chemical industry. The company supplies its products to a variety of industries including agriculture, automotive, cables, electricals, hygiene, healthcare, polymers, packaging, textiles and footwear.
The Delhi-based company's R&D division is a DSIR-recognized facility under the Ministry of Science and Technology. It is engaged in several cutting-edge scientific research projects. Back in January this year, the R&D division collaborated with King Khalid University, Saudi Arabia.