Stock under Rs 5: Keep an eye on this penny stock as it enters into joint venture with Indraprastha Gas Limited (IGL) to set up India’s first integrated smart meter manufacturing plant!
The capital expenditure for integrated smart meter manufacturing plant is worth Rs Rs 1,100 million (Rs 110 crore).
"Vikas Lifecare enters into a joint venture agreement with Indraprastha Gas Limited (IGL) to set up an integrated smart meter manufacturing plant with a capital expenditure of Rs 1,100 million (Rs 110 crore)," the company said in a filing.
Vikas Lifecare has announced that its subsidiary Genesis Gas Solutions has formed a joint venture with Indraprastha Gas Limited (IGL) to manufacture smart meters. The amount of Rs 110 crore will be invested through the JV company IGL Genesis Technologies to execute the plan. Vikas Lifecare said in a regulatory filing on Friday that it is committed to taking forward the smart meter manufacturing plans.
In the joint venture, IGL will possess a majority stake of 51 per cent, responsible for manufacturing gas meters, fully manufactured gas meters, as well as selling, distributing, and supplying gas meters, handheld units (HU), and/or data concentration units (DCU). Genesis Gas Solutions Private Limited (Genesis) will own the remaining 49 per cent ownership in the venture.
The venture will establish a manufacturing facility to produce gas meters. It will assemble and manufacture SKD and FM gas meters, and sell, distribute, and supply gas meters, HHU, and DCU. It will also assemble, manufacture, sell, distribute, and supply other meters, including water and utility meters. The venture will offer meter asset management services, including comprehensive maintenance of gas meters and other meters, and contract management services.
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Vikas Lifecare is mainly engaged in trading and manufacturing polymer, rubber compounds and additives for plastics, synthetic and natural rubber. The company has a market cap of Rs 440 crore. On Monday, shares of Vikas Lifecare Ltd surged 2.30 per cent to Rs 3.13 per share from its previous closing of Rs 3.06. Investors should keep an eye on this micro-cap stock under the radar.
Disclaimer: The article is for informational purposes only and not investment advice.