Penny stock at Rs 5 and promoters & FIIs increase stake: After reporting turnaround story in FY24 the Board allots 1,28,00,000 equity shares on conversion of warrants!

From Rs 2.86 per share (52-week low) to Rs 5.02 per share, the stock is up by 75.5 per cent.

Vikas Lifecare Limited (VLL) informed that the Board of Directors of the company issued 1,28,00,000 warrants to non-promoter Sylph Technologies Ltd on a preferential basis. These warrants entitled holders to convert them into an equal number of equity shares for Rs 4 per share (including a premium of Rs 3). Upon receipt of the remaining 75 per cent of the issue price (Rs 3 per warrant) from the warrant holders, the Board of Directors approved the conversion of all 1,28,00,000 warrants into the same number of equity shares. This conversion increases the company's issued and paid-up capital to Rs 182,31,68,560. There are still 3,45,00,000 warrants outstanding, and holders can convert them into equity shares by paying the remaining Rs. 3 per warrant within 18 months of allotment.

Earlier, the board approved the allotment of 2,30,00,000 equity shares by converting 2,30,00,000 warrants into equity shares, each with a face value of Re 1 at an issue price of Rs 4 (including a Rs 3 premium) on a preferential basis. This conversion followed the receipt of a balanced amount totalling Rs 6,90,00,000 at Rs 3 per warrant (75 per cent of the issue price), as per SEBI (ICDR) Regulations, 2018. Members had previously approved this on September 30, 2023, where the warrants were initially allotted at Rs 4 per warrant with a payment of Re 1 (25 per cent of the issue price), allowing conversion into equity shares upon paying the remaining Rs 3 within 18 months.

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.

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Standalone Results

According to the Quarterly Results, the revenue from operations increased by 5.6 per cent to Rs 122.95 crore in Q4FY24 over Q4FY23. The company reported a net profit of Rs 1.82 crore in Q4FY24 compared to Rs 25.97 crore in Q4FY23, an increase of 107 per cent. In its annual results, the company reported revenue from operations of Rs 416.72 crore in FY24 compared to net sales of Rs 462.72 crore in FY23. The company reported a net profit of Rs 19.32 crore in FY24 compared to a net loss of Rs 15.36 crore in FY23, an increase of 226 per cent. In Q4FY24, the company reported other income of Rs 4.94 crore and in FY24, the company reported other income of Rs 26.17 crore.

Consolidated Results

According to the quarterly results, the revenue from operations increased by 11.4 per cent to Rs 131.54 crore in Q4FY24 over Q4FY23. The company reported a net loss of Rs 2.03 crore in Q4FY24 compared to a net loss of Rs 26.82 crore in Q4FY23. In its annual results, the company reported revenue from operations of Rs 445.75 crore in FY24 compared to the revenue from operations of Rs 476.05 crore in FY23. The company reported a net profit of Rs 13.45 crore in FY24 compared to a net loss of Rs 15.51 crore in FY23, an increase of 187 per cent. In Q4FY24, the company reported other income of Rs 4.73 crore and in FY24, the company reported other income of Rs 26.16 crore.

Additionally, VLL is part of a consortium led by Eraaya Lifespaces that has submitted a proposal to acquire Ebix, Inc. This acquisition would be completed through a Chapter 11 bankruptcy process, subject to court approval. The Ebix management team supports this proposal and intends to work with the consortium to finalize the plan.

Furthermore, VLL is also pursuing other growth opportunities. While facing a temporary setback in acquiring Industrial Investment Trust Limited (IITL), they remain committed to the deal. Additionally, they have invested further in their joint venture IGL Genesis Technologies Ltd (IGTL) to establish India's first smart gas meter manufacturing plant. This initiative demonstrates VLL's focus on innovation and its contribution to modernizing India's energy infrastructure.

In March 2024, the promoter of the company bought 3 crore shares and FIIs bought 6.7 crore shares and increased their stake to 12.17 per cent and 4.08 per cent respectively in April 2024 compared to 11.35 per cent and 0.33 per cent, respectively in March 2023.

Today, shares of Vikas Lifecare Limited gained 0.40 per cent to Rs 5.02 per share from its previous closing of Rs 5 per share. The stock’s 52-week high is Rs 7.92 while its 52-week low is Rs 2.86. The company has a market cap of over Rs 800 crore. From Rs 2.86 per share (52-week low) to Rs 5.02 per share, the stock is up by 75.5 per cent.

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