Vikas EcoTech shares rise 4% as company inks real-estate deal

Shares of Vikas EcoTech surged during Tuesday's trading session after the company announced its venture to enter into a green infrastructure development project in the Delhi-National Capital Region (NCR) region. The company informed the bourses about the same through an exchange filing.

Vikas Ecotech has ventured into the arena of green-enviro friendly infrastructure development projects in collaboration with ARM Estate Projects, a company engaged in real-estate development of commercial and residential projects in Delhi-NCR, which works under the able leadership Unity Group, which has an experience of more than 30 years.

Vikas Ecotech entered a collaboration arrangement wherein the company will be inducing 75 per cent of the total project cost as the collaborator. The estimated Project Cost of targeted projects is about INR 50 crore million, including the cost of lands as well as the costs to be incurred for the construction and Development of commercial buildings at 2 locations in Gurugram, Haryana.

"Vikas Ecotech has induced Rs 150 crore during July 2023 in lieu of the payments accrued towards the land parcels in the ongoing investments in Delhi/NCR, the remaining contribution of Rs 22.5 crore will be induced at appropriate stages in the project development," the filing added.

Following the announcement, shares of Vikas Ecotech rose 4 per cent to Rs 3.20 on Tuesday, before giving up its gains partially. The company commanded a total market capitalization of more than Rs 350 crore. The scrip had settled Rs 3.09 on Monday.

Vikas Ecotech recently bagged an order worth Rs 20 crore to supply coal from Prism Johnson, a Rajan Raheja Group promoted entity. The order shall be completed by October 31, 2023. Vikas EcoTech ventured into the conventional energy market with the supply of coal which is the major source of energy in India.

The company board of Vikas Ecotech is scheduled to meet on Thursday, August 10 to consider and approve the results for the quarter ended June 30, 2023.

The New Delhi-based Vikas Ecotech is engaged in the business of specialty polymers for applications in sectors like electrical, infrastructure, packaging, and automotive, among others. The company had recently launched funds through qualified institutional placement, while also reducing debt from its books.

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