Penny Stock Under Rs 5; Company to raise Rs 200 crore via QIP, FCCB or Rights issue for growth opportunity
Its Board of Directors has approved a resolution to raise funds up to Rs 200 crore through various modes, including QIP, FCCB, FPO, and Rights Issue, to finance growth opportunities.
On Friday, shares of Vikas Lifecare Limited gained 1.81 per cent to an intraday high of Rs 4.51 per share from its previous closing of Rs 4.43 per share. The stock’s 52-week high is Rs 7.92 while its 52-week low is Rs 4.05.
Vikas Lifecare Limited (VLL) has announced that its Board of Directors has approved a resolution to raise funds up to Rs 200 crore through various modes, including QIP, FCCB, FPO, and Rights Issue, to finance growth opportunities. To accommodate this fundraising, the company will increase its authorized share capital from Rs. 200 crore to Rs. 235 crore and amend its Memorandum of Association. Additionally, the Board has authorized the use of postal ballots to seek members' approval for the necessary resolutions.
Earlier, the company partnered with DRDO to commercialize groundbreaking biodegradable granule technology for eco-friendly packaging. This collaboration aligns with the growing global demand for sustainable alternatives to traditional plastic bags. By leveraging DRDO's expertise and VLL's manufacturing capabilities, the partnership aims to reduce plastic pollution and promote a circular economy. Additionally, VLL's recent establishment of a new manufacturing facility in Rajasthan will further strengthen its position in the market and contribute to its overall growth and profitability.
About the Company
Vikas Lifecare Limited (VLL) is a diversified company with a strong foothold in polymer and rubber compounds, specialty additives, and smart gas metering solutions. The company is committed to environmental sustainability, upcycling waste materials into valuable products, and fulfilling EPR obligations. VLL's subsidiary, Genesis Gas Solutions, is a leader in smart gas metering, holding a significant market share in India. The recent joint venture with IGL will further strengthen VLL's position in this sector. Beyond its core businesses, VLL has expanded into the B2C segment, offering a range of consumer products in the FMCG, agro, and infrastructure sectors. The company's latest venture into film production demonstrates its ambition to explore new opportunities and create innovative content for global audiences.
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According to Quarterly Results, the net sales increased by 46.5 per cent to Rs 134.88 crore in Q2FY25 compared to net sales of Rs 92.09 crore in Q2FY24. The company reported a net profit of Rs 2.15 crore in Q2FY25 compared to a net loss of Rs 2.91 crore in Q2FY24, an increase of 174 per cent. In its annual results, the net sales decreased by 6.4 per cent to Rs 445.75 crore in FY24 compared to net sales of Rs 476.05 crore in FY23. The company reported a net profit of Rs 13.95 crore in FY24 compared to a net loss of Rs 15.55 crore in FY23, an increase of 190 per cent.
In September 2024, FIIs bought 41,25,030 shares and increased their stake to 0.50 per cent compared to 0.28 per cent in June 2024. The company has a market cap of Rs 818 crore. Investors should keep this penny stock under the radar.
Disclaimer: The article is for informational purposes only and not investment advice.