Promoter bought 2 crore shares in Q1FY25: Penny stock under Rs 10 in focus as company announces update on acquisition deal; details inside!

From Rs 3.01 per share (52-week low) to Rs 5.18 per share, the stock is up by 72 per cent.

Vikas Lifecare Limited (VLL) announced significant progress in their acquisition of Ebix Inc. As part of a consortium led by Eraaya Lifespaces Limited, VLL has made substantial deposits towards the acquisition. An initial deposit of USD 7.25 million (Rs 61.50 crore approx) was followed by two additional deposits - USD 2.5 million (Rs 21 crore approx) and USD 12 million (Rs 101 crore approx). This brings the total deposited amount to USD 21.75 million (Rs 181 crore approx).

The acquisition will be executed through a court-approved reorganization plan under Chapter 11 of the US Bankruptcy Code. This plan is backed by Ebix Inc.'s senior management and paves the way for collaborative efforts to get both Ebix Inc. and its affiliated debtors out of Chapter 11. The consortium, including VLL, will work together with Ebix representatives to achieve this goal.

Earlier, the Board of Directors of Vikas Lifecare Limited (VLL) approved the conversion of 3,45,00,000 warrants held by the promoter (Mr Vikas Garg) into the same number of equity shares. The face value of each share is Re 1, but the issue price is Rs 4, including a premium of Rs 3. Promoter received this preferential allotment after paying the remaining 75 per cent (Rs 3) of the issue price per warrant, totalling Rs 10,35,00,000. These warrants were originally allotted in March 2024 with the right to convert them into equity shares upon paying 25 per cent (Re 1) of the issue price. This conversion increases the company's issued and paid-up capital to Rs 185,76,68,560 and the new shares rank equally with existing ones. There are no outstanding warrants for conversion.

About Vikas Lifecare Ltd

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.

In April 2024, the promoter of the company bought 2 crore shares and increased their stake to 12.17 per cent compared to 11.35 per cent in March 2023. On Tuesday, shares of Vikas Lifecare Limited gained 0.38 per cent to Rs 5.18 per share from its previous closing of Rs 4.16 per share. The stock’s 52-week high is Rs 7.92 while its 52-week low is Rs 3.01. The company has a market cap of over Rs 800 crore. From Rs 3.01 per share (52-week low) to Rs 5.18 per share, the stock is up by 72 per cent.

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

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