Vikas Ecotech acquires Shamli Steel for Rs 1.6 bn

Recycling player Vikas Ecotech (VEL) announced the successful acquisition of Shamli Steel for Rs 1.6 billion. As part of this acquisition, VEL has injected an initial working capital of Rs 150 million into Shamli Steel, with plans to further invest between Rs 350-500 million over the initial 3-6 months post-assuming control of the plant, as outlined in a regulatory filing. In a share swap deal, Vikas Ecotech has secured 100 per cent equity of Shamli Steel at an enterprise value of Rs 1600 million (Rs 160 crore). This strategic acquisition is expected to significantly enhance the company's gross revenue by an estimated Rs 9 billion, providing Vikas Ecotech with a competitive advantage as it expands its presence in regional markets.