FIIs bought 17,37,43,323 shares of this multibagger penny stock: Company induced Rs 85 million as further capital for manufacturing smart gas meters in India

From Rs 2.66 per share (52-week low) to Rs 5.37 per share, the stock gave multibagger returns of over 100 per cent.

Vikas Lifecare Ltd (VLL) informed that it has induced further capital amounting to Rs 85 million to its step-down JV i.e. IGL Genesis Technologies Ltd. (IGTL) a joint venture between the company’s subsidiary ‘Genesis Gas Solutions Pvt Ltd (GGSPL) and Indraprastha Gas Ltd (IGL) towards CAPEX for establishing the plant at NOIDA, Uttar Pradesh for manufacturing smart gas meters in India.

IGL Genesis Technologies Limited (IGTL), a joint venture between Indraprastha Gas Limited (IGL) and Vikas Lifecare's subsidiary Genesis Gas Solutions Pvt Ltd (GGSPL) with a 51:49 ownership stake, has recently received a capital infusion of Rs 544 million from both partners. This investment is being directed towards establishing India's first integrated smart meter manufacturing plant in Noida, Uttar Pradesh.

The total project cost is estimated at Rs 1,100 million and aims to produce 1 million smart gas meters annually. The strategic location and planned capacity significantly address the growing demand for smart meter solutions in the country. Furthermore, IGTL's progress in land acquisition, building development, and equipment acquisition showcases efficient project execution. To ensure their meters meet international standards, IGTL has acquired technical expertise from Hangzhou Beta Meter Company Ltd (Holley Group), a global leader in gas meter production. This initiative has the potential to revolutionize India's smart meter manufacturing capabilities and contribute to the modernization of the country's energy infrastructure.

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Earlier, VLL's agro-business division recently received new orders valued at Rs 11 crore for premium nuts from their Karnataka processing facility, to be completed within the first quarter of the current fiscal year. This comes on the heels of an earlier Rs 50 crore order for premium and organic rice varieties (Rs 40 crore for premium and Rs 10 crore for organic). With these wins, the agro-business division has set an ambitious target of Rs 450 crore in revenue for the current fiscal year, representing a 20 per cent year-on-year growth compared to Rs 360 crore achieved in the previous year (2023-24). This growth is fueled by the company's strategic expansion into agro-product processing facilities, signifying its commitment to growth in the premium and organic food segments.

Vikas Lifecare Limited, a dynamic and diversified business entity, is renowned for its robust operations in polymer and rubber compounds along with speciality additives for plastics and rubbers. As an ISO 9001:2015 certified company, it serves as a Del-Credere agent for ONGC Petro Additions Limited, and its subsidiary Genesis Gas Solutions Pvt. Ltd. is a leader in smart gas metering in India. The company has recently broadened its portfolio to include FMCG, agro-products, and infrastructure, further diversifying into entertainment with a focus on film production. Listed on both NSE and BSE, Vikas Lifecare continues to expand its business horizons aggressively.

As of April 2024, FIIs bought 17,37,43,323 shares and increased their stake to 10.49 per cent compared to 0.33 per cent in March 2023. The stock’s 52-week high is Rs 7.92 while its 52-week low is Rs 2.66. The company has a market cap of over Rs 850 crore. From Rs 2.66 per share (52-week low) to Rs 5.37 per share, the stock gave multibagger returns of over 100 per cent.

Disclaimer: The article is for informational purposes only and not investment advice.