Vikas Ecotech, a recycling firm, has announced its intention to raise Rs 100 crore through a qualified institutional placement (QIP) to support its expansion plans.

The company aims to utilise the proceeds from the QIP issue, which commenced on May 31, for business expansion and to meet its working capital requirements. The board of directors recently approved the proposal for this fundraising initiative.

According to the company’s statement, the board has approved the first tranche of the QIP, which will not exceed Rs 50 crore. The remaining amount of Rs 50 crore will be raised through subsequent tranches.

This strategic move will enable Vikas Ecotech to diversify its business portfolio further. In addition to its recycling activities, the company will now manufacture steel pipes and MDPE (medium-density polyethylene) pipes.

In the previous month, Vikas Ecotech entered the real estate sector, focusing on developing commercial and residential projects in Gurugram, Haryana. This expansion into real estate complements the company’s existing business of producing speciality polymers used in various sectors such as electrical, infrastructure, packaging, and automotive.

By raising funds through the QIP route, Vikas Ecotech is positioning itself for growth and is committed to enhancing its operations in multiple domains.