Shares of this polymer manufacturing company jumped 5 percent in Tuesday’s trading session after they announced of raising funds via QIP worth Rs. 1,000 million. In 6 months, the shares have delivered more than 70 percent to its shareholders.
With a market capitalisation of Rs. 749 crores, the shares of Vikas Lifecare Ltd started Tuesday’s trading session on a flatter note at Rs. 4.95. The shares hit a high of Rs. 5.40, gaining around 5 percent and closed the day at Rs. 5.20 apiece.
Such a bullish movement in the share price was observed after the company in an exchange filing announced raising funds via QIP worth Rs. 1,000 million.
The company has decided to bring QIP in two tranches. 1st tranche of QIP not exceeding Rs. 500 million and the remaining amount of Rs. 500 million will be raised by the company in the second or subsequent trench. The issue amounting will not exceed Rs. 1,000 million as approved by the members on the 28th Annual General Meeting dated September 30, 2023.
The floor price for the issue is set at Rs. 5.02 per Equity Share (“Floor Price”), based on the pricing formula as prescribed under the SEBI ICDR Regulations.
On November 15th, 2022, the company approved the QIBs Issue up to Rs. 500 million. This is the 3rd tranche of the QIBs issue of Rs.2,000 million as approved on February 18, 2022.
Looking at the company’s financial statements, the revenue increased 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.
On February 15th, 2022, the company acquired 30,000 Equity Shares representing a 75 percent in Genesis Gas Solutions Private Limited, accordingly, the entity is now a subsidiary of Vikas Lifecare Limited.
Furthermore, in January 2023, the company approved an investment of Rs. 250 Crores in Kohinoor Foods Limited.
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, agro products, FMCG products, etc.
Written By Vaibhav Patil
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
