Penny stock at Rs 5.12 & FIIs increase stake: Promoter & non-promoters were allotted 2,91,00,000 shares on conversion of warrants via preferential issue!

From Rs 2.66 per share (52-week low) to Rs 5.12 per share, the stock is up by 92.5 per cent.

The Board of Directors of Vikas Lifecare Limited approved the conversion of 2,91,00,000 warrants into the same number of equity shares. This follows previous communications regarding warrant allotment and conversion. The conversion price is Rs 4 per share (including a premium of Rs 3), with promoters and non-promoters/public category eligible for preferential allotment. After receiving the remaining balance of Rs 8,73,00,000 (Rs 3 per warrant) from allottees exercising their conversion rights, the company's issued and paid-up capital will increase to Rs 178,73,68,560 (178,73,68,560 equity shares of Re 1 each). These new shares will have equal rights with existing shares. Notably, 7,03,00,000 warrants are still outstanding, and holders can convert them into shares by paying the remaining Rs 3 per warrant within 18 months of allotment. Vikas Garg received 1,55,00,000 shares, Sylph Technologies Limited received 81,00,000 shares, and Srestha Finvest Limited received 55,00,000 shares.   

Earlier, Vikas Lifecare Limited, Vikas Garg, and Advik Capital Limited joined forces to acquire a controlling stake in Industrial Investment Trust Limited (IITL), triggering an open offer to shareholders. While the deal secured approval from SEBI, India's securities regulator, it was met with a hurdle from the RBI, the central bank, due to concerns about having multiple non-banking financial companies in the resulting group. Despite this setback, Vikas Lifecare remains committed and is working with IITL to resubmit the application and address the RBI's reservations, allowing the open offer to proceed as planned.

Vikas Lifecare Ltd (VLL) invested an additional Rs 85 million in their joint venture IGL Genesis Technologies Ltd (IGTL), which is co-owned by VLL's subsidiary Genesis Gas Solutions Pvt Ltd (GGSPL) and Indraprastha Gas Ltd (IGL). This capital infusion is part of a larger Rs 54.4 crore investment from both partners to establish India's first integrated smart meter manufacturing plant in Noida, Uttar Pradesh. The total project стоимоть (topmost) (cost) is estimated at Rs 110 crore and aims to produce 1 million smart gas meters annually. IGTL has acquired technical expertise from a global leader to ensure their meters meet international standards, and their progress in land acquisition, building development, and equipment acquisition suggests efficient project execution. 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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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 5.12 per share, the stock is up by 92.5 per cent.

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