Penny stock under Rs 10: Board approves fresh issuance of warrants to promoter at Rs 4/warrant; to raise up to Rs 97,00,00,000!

The stock is up by 65 per cent in just 1 month.

Vikas Lifecare Ltd informed that the Board of Directors of the company in their meeting held on Wednesday, September 06, 2023, at the Registered Office of the Company situated at G-1, 34/1, East Punjabi Bagh, New Delhi -110026, inter-alia reviewed and decided to supersede the decision taken in the Board meeting held on August 31, 2023, for allotment of warrants on the preferential issue to the promoters of the company only, by the inclusion of certain other allottees and revise the size of the preferential issue, accordingly approved the fresh issuance and allotment of up to 24,25,00,000 (Twenty-four crores and twenty-five lakhs only) fully Convertible Warrants (Warrants), carrying a right exercisable by the warrant holder to subscribe to one equity share (face value of Rs 1) per warrant to the ‘Promoters’ and persons belonging to ‘Non‐Promoter, Public Category’ on preferential basis.

 The issue price of Rs 4 (Rupees Four Only) per Warrant, for cash, subject to shareholders' approval and other statutory approvals, in accordance with provisions of Chapter V of SEBI Regulations, 2018, as amended up‐to‐date and applicable provisions of Companies Act, 2013 and rules made there‐under, aggregating amount of the preferential issue up to Rs 97,00,00,000 (Rupees ninety-seven crores only).

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 increased by 6.48 per cent to Rs 98.89 crore in Q1FY24, compared to Q1FY23. Profit before tax (PBT) increased by a whopping 420.50 per cent to Rs 12.92 crore, while profit after tax (PAT) increased by 340 per cent to Rs 11.70 crore.

This micro-cap company has a market capitalization of over Rs 700 crore and very little debt. The company has only Rs 30.4 crore in outstanding debt, which is just 4.15 per cent of its current market capitalization. This means that the company is essentially debt-free.

On Thursday, shares of Vikas Lifecare gained 5.67 per cent to Rs 5.03 per share from its previous closing of Rs 4.76. The stock is up by 65 per cent in just 1 month. Investors should keep an eye on this micro-cap stock.

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