Premium specialty chemicals company Vikas Ecotech has set a target to become a debt-free company by the end of the next fiscal under its debt reduction programme. The small-cap company in an exchange filing informed that it has significantly reduced its debt and aims to cut further.
The company informed exchanges that it has paid back Rs 30 million. The total amount of bank debt has now been reduced to Rs 843 million and the overall bank-debt to Rs 857 million.
"The company aims to become a 100 per cent debt-free entity within FY 2023-2024 under debt reduction programme," Vikas Ecotech said in the filing.
After the current repayment of bank debt, the company intends to pay back an additional Rs 295 million during the fourth quarter, thus reducing the debt to Rs 548 million.
This, the company said, will pave the way towards becoming a ‘ZERO Debt Company’ in 2024.
New Delhi-head Vikas Ecotech operates in the specialty chemical industry. Shares of Vikash Ecotech are one of those small-cap stocks that have delivered whopping returns in post-Covid market rebound. It has yielded a whopping 450 per cent return in the past three years.
The company has also approved the issuance of rights. "...issuance of equity shares, other convertible securities, warrants and bonds or any other permissible mode or any combination thereof, for an aggregate amount not exceeding Rs 100 crore," the filing said.
