Penny stock below Rs 10 gained 8.5 per cent after the company announced a total fundraising of 100,00,00,000 via QIP and set floor price at Rs 5.02!

The stock is up by 74 per cent in just 6 months.

Vikas Lifecare Limited informed the approval of the board of directors of the Company, at its meeting held on May 23, 2023, and the shareholders' resolution passed on September 30, 2023, in the Annual General Meeting and in-principle approval(s) received from both the Stock Exchanges, namely BSE Limited dated January 1, 2024, and National Stock Exchange of India Limited dated January 1, 2024, for QIP Issue, the Fund Raising Committee (the ‘Committee’), at its meeting held on i.e. January 1, 2024, which commenced at 8:30 P.M. and concluded at 9:15 P.M., has inter alia:

• Approved size of the present trench (being 1st Tranche of QIP not exceeding Rs 50 crore and the remaining amount of Rs 50 crore will be raised by the Company in the second/subsequent trench. Issue amounting not exceeding Rs 100 crore as approved by the members in the 28^th Annual General Meeting dated September 30, 2023.
• Approved and adopted the preliminary placement document dated January 1, 2024, together with the application form in connection with the Issue.
• Authorized the opening of the Issue, i.e. January 1, 2024.
• Approved the floor price for the Issue, being Rs 5.02 per equity share, based on the pricing formula as prescribed under the SEBI ICDR Regulations.

Earlier, Vikas Lifecare's "smart product" subsidiary Genesis Gas Solutions, a major player in India's gas metering market with a 20 per cent share, landed a mammoth order for 40,000 gas meters worth Rs 49.5 crore from Gujarat Gas, the country's largest city gas distributor. 95 per cent owned by Vikas Lifecare, Genesis boasts India's first smart gas meter MDM and Head-end system, currently managing over 150,000 meters across multiple CGDs. This deal further cements its position as a leader in smart metering solutions for the Indian infrastructure sector.

Vikas Lifecare Ltd, a leading trader and manufacturer of polymer, rubber compounds and additives for plastics, synthetic & natural rubber, infra, agro products, FMCG products, etc. According to the Quarterly Results, the company's net sales decreased by 12 per cent to Rs 116.03 crore and net profit skyrocketed by 206 per cent to Rs 7.65 crore in Q2FY24, compared to Q2FY23. In H1FY24, net sales decreased by 4.05 per cent to Rs 214.93 crore and net profit skyrocketed by 278.02 per cent to Rs 19.35 crore in H1FY24, compared to H1FY23.

In FY23, the net sales increased by 58.2 per cent to Rs 476.05 crore compared to FY22 while the company reported a net loss of Rs 15.55 crore in FY23 compared to a net profit of Rs 28.92 crore in FY22. This micro-cap company has a market capitalization of Rs 751.52 crore and very little debt. The company has only Rs 25.5 crore in outstanding debt, which is just 3.4 per cent of its current market capitalization.

Today, shares of Vikas Lifecare gained 8.5 per cent an intraday high of Rs 5.38 per share from its previous closing of Rs 4.96. At the closing bell, shares of the company were trading at Rs 5.23 per share, up 5.44 per cent with a spurt in volume by more than 3 times on BSE. The stock is up by 74 per cent in just 6 months. Investors should keep an eye on this micro-cap stock.

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