Rs 40,00,00,000 fundraising likely to be announced by this penny stock under Rs 5!

The net sales stood at Rs 98.89 crore, up 6.48 per cent and profit after tax of Rs 11.70 crore, up 340 per cent in Q1FY24 compared to Q1FY23.  

Vikas Lifecare Ltd informed that the meeting of the Board of Directors of the company shall be convened on Thursday, August 31, 2023, inter-alia, to transact the following businesses:

1) To issue securities, and convertible instruments on a preferential basis to Mr Vikas Garg, promoter of the company, who signified his intent in writing to subscribe additional equity/convertible instrument/warrants, or any other combination thereof, in cash, at a premium, for an amount not exceeding Rs 40,00,00,000

2) To consider and approve any other item(s) with the permission of the chair

Earlier, the company announced that moving further ahead with the objective of broad-basing the product portfolio, and diversifying into futuristic and unique product lines, new edge businesses, complimenting and supplementing the existing business lines of the company, we have acquired 98 per cent equity of MSR Apparels Private Limited (a company engaged in manufacturing of all types of textile garments and clothing accessories) from its existing promoters and shareholders in an all-cash deal for a total consideration of Rs 125 million thus it became a subsidiary company.

Quarterly Results: The net sales stood at Rs 98.89 crore, up 6.48 per cent; profit before tax stood at Rs 12.92 crore, up 420.50 per cent and profit after tax of Rs 11.70 crore, up 340 per cent in Q1FY24 compared to Q1FY23.  

The company has a market cap of Rs 488 crore. Additionally, the company has very little debt, with only Rs 30.4 crore outstanding. This is just 6.80 per cent of its current market capitalization, which means that the company is essentially debt-free. Investors should keep an eye on this micro-cap stock.

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