Penny Stock Below Rs 10 Okays Conversion of 5.20 Cr Warrants Into Shares: Do You Own?

Vikas Lifecare Ltd a penny stock below Rs 10 ended 0.94% higher at Rs 5.35 apiece on Friday after the Board of Directors approved the conversion of 5.20 Cr warrants into shares for the non-promoter category.

The company's Board of Directors met on Friday, April 5, 2024, and decided to approve the preferential allotment of equity shares to "Non-Promoters/Public Category" upon the conversion of 5,20,00,000 warrants into 5,20,00,000 equity shares at an issue price of Rs. 4/-each, in addition to a premium of Rs. 3/-each. This approval was based on the allottees' payment of the remaining balance of Rs. 15.60 Cr, which equates to Rs. 3/-each warrant, or 75% of the issue price per warrant.

"Pursuant to members approval dated September 30, 2023, these warrants were allotted, in terms of SEBI (ICDR) Regulations, 2018 to 'Promoter' and 'Non-Promoter/Public Category', on preferential basis, at an Issue Price of Rs. 4/- per warrant on payment of Rs. 1/- per warrant, being 25% of the Issue Price, entitling the warrants holders to get their warrants converted into equal number of Equity Shares of the Company by paying remaining 75% i.e., Rs. 3/- within 18 months from the date of warrant allotment," said Vikas Lifecare in a regulatory filing on Friday.

"Consequent to today's conversation of warrants/allotment of Equity Shares, the issued and paid-up capital of the Company stands increased to Rs. 170,21,68,560/-consisting of 170,21,68,560 equity shares of Re. 1/- each. The new equity shares so allotted, shall rank pari-passu with the existing equity shares of the Company," the company further stated in a stock exchange filing on 5th April.

Vikas Lifecare recently revealed on March 28 that it has purchased an enormous stake in Benchmark News Lab Private Limited. In order to get a 7.5% shareholding in the well-known news channel Bharat Express News, the company invested Rs 150 million. In the forthcoming financial Year 2024-2025, the corporation may increase its equity stake in the venture and also the relevant industry. Vikas Lifecare recently entered the media and entertainment business industry as part of its expansion plans and to broaden its business interests. The company has been looking into ways to gain a strong foothold in the sector through mergers and acquisitions as well as assessing and establishing an independent business division to improve its operations in the relevant market.

Traditionally involved in the production and distribution of polymer and rubber compounds, as well as speciality additives for plastics and synthetic and natural rubber, Vikas Lifecare Limited (VLL) holds an ISO 9001:2015 certification.