Shares of this polymer manufacturing company surged 10 percent after its subsidiary accomplished the incorporation of a joint Venture with Indraprastha Gas. In six months, the shares have delivered multibagger returns of 120 percent to its shareholders.
With a market capitalisation of Rs. 928 crores, shares of Vikas Lifecare Ltd started Monday’s trading session on a higher note at Rs. 7.10 compared to its previous close of Rs. 6.45. The shares hit a high of Rs. 7.45, gaining around 10 percent, also recorded as the company’s fresh 52-week high and are currently trading at Rs. 7.05 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced that its subsidiary company Genesis Gas Solutions Pvt. Ltd. (Genesis) had accomplished the incorporation of “IGL Genesis Technologies Limited” the joint venture company with Indraprastha Gas Limited (IGL) with equity participation from Indraprastha Gas Limited (IGL) and Genesis Gas Solutions Pvt. Ltd. (Genesis) in the ratio of 51:49 respectively.
With the incorporation of IGL Genesis Technologies Limited, Genesis Gas Solutions has completed the inducement of its share of the Paid-Up capital amounting to Rs. 181 Million in the newly incorporated Joint Venture entity.
Earlier, Genesis Gas Solutions Pvt Ltd had announced having entered into a Joint Venture Agreement with Indraprastha Gas Limited (IGL) to establish India’s first Integrated State-of-the-Art Smart Meter manufacturing plant with a total Capital Expenditure of Rs. 1080 Million.
The Joint Venture (JV) company will manufacture Diaphragm Gas Meters with IoT technologies like LoRa, LoRaWAN, Bluetooth, NFC, NB-IoT etc. Moreover, the JV company will also indigenously develop the software and Interface Programmes with in-built Smart Analytics, Dashboards and Predictive Maintenance Protocols, and Allied Systems for the Smart Meters manufactured.
Furthermore, the company mentioned that, initially, the Smart Meter Manufacturing Plant shall have installed capacity to manufacture 1 Million Meters annually, and is planned to be operational by July 2024.
And aims to tap the potential high demand for smart meters for both domestic as well as international markets by providing the latest technology-based metering solutions meant for long-range communications and capable of working in low-power networks, pre-paid metering, and automated metering,
Looking at Vikas Lifecare’s financial statements, the revenue zoomed by 17 percent from Rs. 98.89 crores in the June quarter to Rs. 116.03 crores during the September quarter. On a contrasting note, the net profits declined by 31 percent from Rs. 11.07 crores to Rs. 7.65 crores during the same timeframe.
Genesis is a pioneer in Smart Gas and Water Metering in India and commands about 17 percent of the Domestic Gas Metering share in the country. While supplying Gas Meters to industry leaders including Gujarat Gas Limited (GGL), Avantika Gas Limited, and many more renowned companies engaged in gas exploration, gas transportation and gas distribution.
Headquartered in New Delhi, Vikas Lifecare was incorporated in 1995. The company trades and manufactures polymer, rubber compounds and additives for plastics, synthetic and natural rubber, infra, FMCG products, and agro products.
Written By Vaibhav Patil
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