Penny stock under 10: The company has submitted a term sheet to acquire 100 per cent of the equity of Ebix, INC

From Rs 2.83 per share (52-week low) to Rs 5.05 per share, the stock is up by 78.5 per cent.

Vikas Lifecare Limited (VLL) announced that the company has submitted a term sheet to the Independent Directors of Ebix, Inc. ("Ebix" or "Debtors") to acquire 100 per cent of the equity of Ebix as a member of the consortium led by Eraaya Lifespaces Limited. The proposal if accepted by the Company, would be effectuated under a Chapter 11 Plan of Reorganization (Plan) to be negotiated between the parties and other major stakeholders. The Plan would be subject to Bankruptcy Court approval in accordance with the provisions of the United States of America Bankruptcy Code.

The Terms submitted by the consortium have the support of the EBIX senior management led by the Ebix CEO, and they intend to work collaboratively with the Debtors' representatives to take Ebix out of Chapter 11 through the sponsored Plan. The consortium will submit a 5 per cent cash deposit to the Debtors upon the execution of a binding stalking horse agreement. The proposal provides for the acquisition by the consortium of 100 per cent equity and assets in the worldwide subsidiaries of Ebix while excluding all liabilities in the North American Company, other than those liabilities which may be expressly assumed by the consortium to be identified in the stalking horse agreement.

Additionally, VLL is actively pursuing growth on two fronts. While facing a temporary hurdle from the RBI in their acquisition of Industrial Investment Trust Limited (IITL), VLL remains committed and is working towards a resolution. Meanwhile, they are demonstrating their commitment to innovation by investing an additional Rs 85 million in their joint venture IGL Genesis Technologies Ltd (IGTL). This investment is part of a larger effort to establish India's first smart gas meter manufacturing plant, with the total project costing Rs 110 crore and aiming to produce 1 million meters annually. This initiative signifies VLL's contribution to modernizing India's energy infrastructure and highlights its focus on technological advancements.

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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.

The stock’s 52-week high is Rs 7.92 while its 52-week low is Rs 2.83. The company has a market cap of over Rs 800 crore. From Rs 2.83 per share (52-week low) to Rs 5.05 per share, the stock is up by 78.5 per cent.

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