Vikas EcoTech Limited — M&A Activity 2018

Nov 12, 2018

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	ResullingComPanY	DemergedComPanY
Nameofthecompany	\4KASMULTICORPLIMITED	VrKASEcorEcHLIMITED
Dateoflncorporation&detailsofname changes,if	withthename andstyleofAkshathaancorporatedonNovember09,1995	IncorporaledonNovember30't984withthenameand styleof
any	ManagementConsultantPrivate	VikasLeasingLimitedOn
	Limited.OnMaY29, 2001, the nameof	January07,2002 thenameofthe
	theCompanywas changedtoAkhatha	companiwaschangedtoVikas
	SeNices PrivateLimitedandthenon	ProfinLimited.Thenon
	December29,2008,nameofthe	December31,2008thenameof
	CompanywaschangedtoMoonlite	theCompanywaschangedto
	TechnochemPfivateLimitedFufther,	VikasGlobaloneLimited.Later'
	on November01, 2016, theComPanY	onOctobet21,2015,the nameof
	conve(ed ;nlopubliclimitedcompany	theCompanywaschanged to
	andthename was changedloMoonlite	VikasEcotechLimited
	TechnochemLimited.Thereafteron
	January24,2017,thenameofthe
	companywaschangedtoVikas
	MulticorpLimited.
RegisteredOlfice	Ot,lalt,eastPunjabi Bagh. NewDelhi110026	Punjabi Bagh,NewDelhi:4nVikasApartments,East
		110026
i-meofExchanges wheresecuritiesofthecompanyarel;sted	T-hesecuritiesofthecomPanyareUnlisted	The securitiesofthe conpanyarelistedonBSELimited('BSB')andNationalStockExchangeofIndia Limited('NSE')
NatureofBusiness	TheCompanYisengagedInIne	.Ih"Co*punyisengagedin$e
	busjnessoftradingofvanousChemicalsConpounds,Polymers,	businessofhighvalue group-specialtychemicalsandhigh
	PVCResins,Plasticgranules,ltems	volumegroup-recYcleo
	rclated toPlaslic industryetc.	compounds&lradingdivision

Briefparticdlarsofthe	An	over\ie$ofSchemeofAnangemenl
scheme	.	ThisSchemeofAffangementispresentedundertheprovisionsof
		Section230-232oftheCompaniesAct,2013(asdefinedhereinafter)
		and otherrelevantprovisjonsofthe ConpaniesAct,2013as maybe
	'	applicableandapplicableRulesofCompanies(Compromises,Arrangements Amalgamations) Rules, 2016(asdefinedhercinafter)fot
		Demergefofhighvolumeandtradedgoods business hereinafterrcfered
		toasthe'RecycledCompoundsand TradingDivision'(Demerged
		Underlaking)alongwiththeirconnected Membership,License,
		Registration,assetsandliabilities, shall be hivedofffromofV;kas
		EcotechLimited(DemergedCompany)andtransferredand vested\a'ith/
		inioVikas Multicofp Limited(Resulting Company)onSoingconcern
		basrs,
	.	lnconsiderationVikasMlrlticorp Limited(Resulting Company)toissue
		itsequitysharestotheshareholdersofVjkasEcotecbLimited
		(DemergedCompany)onthebasisofentitlementratio,asdefinedin
		PartCoftlisSchemeandlistingoftheseequitysharesat thestock
		exchangesonwhichsharesofDemerged Companyislistedin
		accordancewiththe applicable regulationofSecurltiesandExchange
		Boardoflndia(SEBI).
	.	The VikasEcotechLimited(DemergedConpany)willretain theHigh
		ValueSpecialty chemical manufacturingbusiness,R&Dresources
		(RemajningBusiness)andother residuarybusiness in the company.
	'	lnaddition,thisSchemeofAruangement alsoprovidesfo.variousothers
		matterconsequential orotherwise integrallyconnectedherewith.
Rationaleforthe scheme	Rationaleoftheschemeismentioned below:
	'	vikasEcotecbLimited('vEL'or'DemergedCompany')hastwocore
		businessverticalsviz.HighValueSpeciallychemicalsbusiness
		(RemainingBusiness)andanotheristheHighvolume'Recycled
		Compounds andTradingDivision'(DemergedUndertaking). Boththe
		verticalshavetheirownstrengtbsanddynamicsbutthenatureof
		businessesofthetwoverticalsareunconnect€danddistinct.Itisbe;ng
		feltthateachofthebusinessverticalhasthepotentialofbeing
		developedintoaparallel,scaleableandindependently profitable
		64fi;

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		the sharehoiders,creditors,employeos andallthe stakeholders at large.
		The proposedreconstructionwiliaddbettervalue tothebusinessesand
		create freshopportunitiesasunder:
		!Resulting Companywillbeabletofocusonhigh volume'Recycled
		CompoundsandTradingDivision'(DenergedUndefaking);
		!Demerged cofirpanywillbe abletofocus onhighvalueSpecialty
		chenicals(RemainingBusiness) and otherresiduarybusiness;
		Further, thelisting of theequitysharesofResultingCompanyonthe
		stockexchangeson whichsharesof theDemerged Company arelisted
		wouldhelpthe shareholdersofDemerged Companytounlockthevalue
		ofthei.shares.
Dateofresolutionpassedby
the Board	of Directorofthe	May 29,2011May29,2017
companyapprovingthe
scheme
Share Capitalof
Company
		(lnRs.)(InRs. m)
	PreAffangement	P,.s'.4,47,61,960/-Ps.n,98,99,6151-
	PostArrangement	Rs.66,34,95,495/-Ils,27,98,99,615/-
Net Worth		(InRs.)(lnRs.m)
	PreAnangement	Rs.5133,919,5981Rs. 1,313,437,939/-
	PostArangement	Rs. 8,29,609,8201R$1,011,747,117/-
Exchange	ratio	TheResulting Companywillissue1(One)EquityShareofRel/-(Rupee
		One)each atparinResultingCompanyforevery1(One)EquitySharesof
		Re.1/-(RupeesOne)eachheldbythe sharcholdersofDemergedCompany