Multibagger penny stock under 10: This small-cap company got Rs 50,00,00,000 fundraising approval from Bombay Stock Exchange and National Stock Exchange!

The stock gave multibagger returns of over 180 per cent from its 52-week low of Rs 2.66 per share.

Vikas Lifecare Ltd announced that following the approval of the Board of Directors at its meeting on May 23, 2023, and the shareholder resolution passed on September 30, 2023, along with the in-principle approvals received from both the Bombay Stock Exchange on January 29, 2024, and the National Stock Exchange on January 1, 2024, for the QIP Issue, the Fund Raising Committee convened today, January 29, 2024, from 6:10 P.M. to 6:35 P.M., has, among other things:

• Approved size of the present trench (being 2nd Tranche of QIP not exceeding Rs 50 crore and the remaining amount of Rs 50 crore already raised by the company in Trench-I, issue amount not exceeding Rs 100 crore as approved by the members in 28th Annual General Meeting dated September 30, 2023.
• Approved and adopted the preliminary placement document dated January 29, 2024, together with the application form in connection with the issue.
• Authorized the opening of the issue on January 29, 2024.
• Approved the floor price for the Issue, being Rs 7.08 per equity share (“Floor Price”), based on the pricing formula as prescribed under the SEBI ICDR Regulations.

Earlier, Vikas Lifecare Limited (VLL) made its biggest investment yet, acquiring a 60 per cent stake in Dubai's renowned SKY 2.0 Club, the Middle East's largest open-air nightclub, for USD 79 million. This high-tech, immersive venue boasts a strong track record with USD 22 million in 2023 revenue and a 38 per cent profit margin, poised to capitalize on the booming global nightclub market (USD 31 billion) and India's young, affluent population with a growing appetite for nightlife.

Additionally, in a multifaceted move, Vikas Lifecare diversified into the entertainment industry by acquiring a 50 per cent stake in Dubai's PME Entertainment, while its subsidiary Genesis Gas Solutions launched a Rs 108 crore smart meter manufacturing plant in Noida, a joint venture with Indraprastha Gas Ltd (IGL), showcasing the company's forward-thinking strategy across sectors.

Vikas Lifecare Ltd is a leading trader and manufacturer of polymer, rubber compounds and additives for plastics, synthetic & natural rubber, infra, agro products, FMCG products, etc. Foreign Institutional Investors (FIIs) bought 10,41,65,000 shares via preferential issue of shares. Coeus Global Opportunities Fund bought 4,16,50,000 shares, AG Dynamic Funds Limited bought 3,17,90,000 shares and Nakshatra Stressed Assets Fund bought 3,07,25,000 shares.

Today, shares of Vikas Lifecare surged 0.80 per cent to Rs 7.60 per share from its previous closing of Rs 7.54 with an intraday high of Rs 7.66 and an intraday low of Rs 7.51. The stock gave multibagger returns of over 180 per cent from its 52-week low of Rs 2.66 per share.

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