Vikas EcoTech Limited — Important, 30-01-2025: Updates

Vikas Ecotech Limited has terminated the Share Purchase Agreement (SPA) with the former shareholders of Shamli Steels Private Limited, reversing the prior share-swap deal valued at ₹160 crore. This decision follows the discovery of certain issues during due diligence, which led to legal action against the original promoters. A mutual settlement has been reached, resulting in the cancellation of 38,03,50,000 equity shares allocated to previous shareholders of Shamli Steels and the restoration of ownership to them. The factory premises of Shamli Steels will also be handed back to its former management. This action will return Vikas Ecotech to its pre-deal status, and the company will reduce its issued capital accordingly, ensuring no financial consolidation with Shamli Steels. Investors should monitor this situation as it may refine Vikas Ecotech's operational focus and facilitate future strategic opportunities.