Multibagger penny stock below Rs 6 and promoters & FIIs increase stake: Board allocated 5,20,00,000 equity shares upon conversion of warrants!

From Rs 2.66 per share (52-week low) to today’s intraday high of Rs 5.49 per share, the stock gave multibagger returns of over 100 per cent.

Vikas Lifecare Limited informed the conversion of a large number of warrants into equity shares. The company had previously communicated the allotment of warrants and conversion of a tranche of 3.5 crore warrants in March 2024. This latest announcement details the Board of Directors' approval to convert another 5.2 crore warrants into equity shares for the "Non-Promoter/Public Category" for Rs 4 per share (including a premium of Rs 3) to Srestha Finvest Limited.

The conversion is subject to receipt of the remaining balance payment (Rs 3 per warrant) from the allottees, totalling Rs 15.6 crore. Consequent to today's conversation of warrants/allotment of equity shares, the issued and paid-up capital of the company stands increased to Rs 170,21,68,560 consisting of 1,70,21,68,560 equity shares of Rs 1 each. The new equity shares so allotted shall rank pari-passu with the existing equity shares of the company.

Vikas Lifecare Limited (VLL) is an ISO 9001:2015 certified company specialising in manufacturing and trading polymer and rubber compounds, including environmentally-conscious upcycled materials. VLL supports government sustainability initiatives and works as a Del-Credere agent for ONGC Petro Additions Limited. Their subsidiary, Genesis Gas Solutions Pvt Ltd., is a leading provider of Smart Gas Meters. To accelerate growth, VLL has diversified into B2C products (FMCG, Agro, Infrastructure) and is strategically expanding into the entertainment sector (including nightclubs, music production, and film production) to fuel further business growth within India and internationally. 

Also Read: What is Book Value and Book Value Per Share? Importance & limitations of book value!

Today, shares of Vikas Lifecare Ltd gained 2.61 per cent to an intraday high of Rs 5.49 per share from its previous closing of Rs 5.09 per share. 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 Rs 848 crore.

As of March 2024, the promoters of the company bought 3,00,00,000 shares and increased their stake to 11.74 per cent while FIIs bought 17,82,35,000 shares and increased their stake to 10.82 per cent and the rest 77.44 per cent is owned by the public shareholders. From Rs 2.66 per share (52-week low) to today’s intraday high of Rs 5.49 per share, the stock gave multibagger returns of over 100 per cent.

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