Small-cap stock below ₹5 jumps 5% despite weak markets. Here's is why

livemint.com:

Small-cap stock below ₹5: Despite weak stock market sentiments on Dalal Street, Vikas Ecotech shares have risen over 5 per cent in intraday trade. In early morning deals on Monday, Vikas Ecotech share price today opened higher and went on to hit day's high of ₹3.05 apiece levels, logging over 5 per cent intraday rise within few minutes of stock market's opening bell today.

As per the latest exchange filing, the board of directors of the small-cap company has received a proposal for ₹35 crore fund raise via preferential issue. Penny stock below ₹5 informed Indian stock market bourses about the fund raise proposal citing, "In terms of Regulation 29 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that the meeting of the Board of Directors of the Company shall be convened on Thursday, August 31, 2023 at the Registered office of the Company at 34/1, Vikas Apartment, East Punjabi Bagh, Delhi-110026, inter-alia, to transact the following businesses: 1] to issue of securities, convertible instruments on preferential basis to Mr.

Vikas Garg, promoter of the Company, who signified his intent in writing to subscribe additional equity/convertible instrument/warrants, or any other combination thereof, in cash, at premium, for an amount not exceeding Rs. 350 Million ( ₹35 crore); 2] to increase authorise capital of the Company and consequent alteration in Memorandum of Association of the Company; 3] to consider and approve any other item(s) with the permission of the Chair." The small-cap company recently announced that it aiming to become a zero debt company by end of the current financial year.