FII Backed Penny Stock Below Rs 5 Likely To Announce Rs 400 Mn Fundraising Plan

According to a stock market announcement from Vikas Lifecare, the company's board of directors will meet on August 31, 2023, to discuss a plan to raise Rs 400 million through warrants.

"To issue of securities, convertible instruments on 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 premium, for an amount not exceeding Rs. 400 Million," said Vikas Lifecare in a stock exchange filing on Saturday.

Recently, Vikas Lifecare entered the B2C market with a variety of consumer products, including FMCG, agricultural, and infrastructure supplies. The company mostly operated in the B2C market. The primary business activities of Vikas Lifecare are the trade and production of polymer, rubber compounds, and additives for plastics, synthetic rubber, and natural rubber.

Due to rising sales, Vikas Lifecare in the June quarter reported an enormous spike in its standalone net profit at Rs 13.31 crore. The firm reported a net profit of Rs 2.33 crore for the April through June 2022-23 fiscal period in a statement. The company's total sales climbed from Rs 88.87 crore in Q1FY23 to Rs 106.30 crore in Q1FY24. Expenses were Rs 91.77 crore in June 2023 quarter as opposed to Rs 86.71 crore in the same quarter of FY23.

On Friday, the shares of Vikas Lifecare closed on the BSE at Rs 3.40 apiece down by 2.30% from the previous close of Rs 3.48. The stock made a 52-week-high of Rs 5.50 on (26/08/2022) and a 52-week-low of Rs 2.66 on (24/05/2023). During Q1FY24, the company recorded promoters shareholding of 11.40%, FIIs stake of 0.02% and public stake of 88.59%.