Vikas Ecotech Buys Shamli Steel For Rs 160 Crore
KJSS
India
24-01-2024
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On Tuesday, recycling company Vikas Ecotech Ltd. (VEL) announced that it had paid Rs 160 crore to acquire Shamli Steel. According to a regulatory filing, it has also invested an initial working capital of Rs 15 crore in Shamli Steel and intends to invest an additional Rs 35-50 crore during the first three to six months after taking over the plant's operations. "Vikas Ecotech acquires 100 per cent equity of Shamli Steel at an enterprise value of Rs 1600 million (Rs 160 crore) in a share swap deal," it said. The acquisition is capable of contributing to the gross revenue of the company by an additional Rs 900 crore and will provide an edge to the company while expanding its footprint in the regional markets.