In a significant market shift, Vikas EcoTech experienced a notable rebound, with its shares surging by over 5% during the early trading session on Monday. This surge in value followed the company board’s in-principal approval for a merger, a decision communicated through an official exchange filing after the board meeting held earlier in the day.
The board’s green signal was specifically for the assessment of a consolidation proposal with Vrindaa Advanced Materials, a company deeply entrenched in the domain of specialty polymer compounds and agricultural products trading. Vrindaa Advanced Materials, founded in 2007, operates from its headquarters in New Delhi and boasts a manufacturing facility at Vigyan Nagar, RIICO Industrial Area, Shahjahanpur, Rajasthan.
To facilitate a thorough evaluation of the consolidation proposal from tax and regulatory perspectives, Vikas EcoTech engaged the expertise of Price Waterhouse & Co LLP, a prominent Big 4 advisory firm.
In response to this development, Vikas EcoTech’s shares rebounded, rising by 5% to trade at Rs 3.59 from Rs 3.41 on Monday morning. The market witnessed the company’s total market capitalization surpassing Rs 460 crore. Notably, the scrip had settled at Rs 3.54 in the previous trading session on Friday.
By 1:50 PM, Vikas EcoTech’s shares continued their upward trajectory, trading at Rs 3.70, reflecting a significant 4.23% increase. This market response indicates investor confidence in the company’s strategic decision to explore a merger with Vrindaa Advanced Materials, marking a pivotal moment in Vikas EcoTech’s growth trajectory.
