Penny stock at Rs 5.13 & FIIs increase stake: The company along with Advik Capital Ltd bought 75,00,000 shares of Industrial Investment Trust Ltd

From Rs 2.66 per share (52-week low) to Rs 5.13 per share, the stock is up by 93 per cent.

Vikas Lifecare Limited, along with Vikas Garg and Advik Capital Limited (collectively the "Acquirers"), entered into a Share Purchase Agreement (SPA) to acquire a controlling stake and 75,00,000 equity shares, representing 33.26 per cent of the issued and paid-up share capital of Industrial Investment Trust Limited (IITL). This acquisition triggered an Open Offer to IITL shareholders as per SEBI regulations.

However, since IITL is a Non-Banking Financial Company (NBFC), the deal required approval from the Reserve Bank of India (RBI) in addition to SEBI clearance. The company submitted the necessary application on March 19, 2024, but it was returned by the RBI due to a "lack of regulatory comfort" concerning having multiple NBFCs in the resulting group.

Despite this setback, Vikas Lifecare is committed to pursuing the acquisition. They are working with IITL to re-file the application with the RBI to obtain the necessary approval. The Open Offer process initiated under SEBI regulations will continue as planned while they address the RBI's concerns. This means that the initial application rejection should not be seen as a definitive denial, and Vikas Lifecare remains determined to complete the acquisition.

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.

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 5.13 per share, the stock is up by 93 per cent.

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