Small Cap Stock Below Rs 10 Approves Allotment Of Warrants On Preferential Issue To Promoters

Vikas Lifecare Ltd. in a Board meeting held on Wednesday, Sept 06, 2023, informed that it has approved fresh issuance of warrants to the promoter. The Board reviewed and decided the allotment of warrants on the preferential issue to the promoters of the company only, by the inclusion of certain other allottees and revised the size of the preferential issue.

In a regulatory filing, the Board of Directors of Vikas Lifecare Ltd. said, "reviewed and decided to supersede the decision taken in the Board meeting held on August 31, 2023, for allotment of warrants on preferential issue to the promoters of the company only, by inclusion of certain other allottees and revise the size of preferential issue, accordingly approved the fresh issuance and allotment of up to 24,25,00,000 (Twenty-Four Crores and Twenty-Five Lakhs only) fully Convertible Warrants ('Warrants'), carrying a right exercisable by the Warrant holder to subscribe to one Equity Share (face value of Re. 1/‐) per Warrant to the 'Promoters' and persons belonging to 'Non‐Promoter, Public Category' on preferential basis at an issue price of Rs. 4/‐ (Rupees Four Only) per Warrant, for cash, subject to shareholders' approval and other statutory approvals, in accordance with provisions of Chapter V of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended up‐to‐date and applicable provisions of Companies Act, 2013 and rules made there‐under, aggregating amount of the preferential issue up to Rs. 97,00,00,000/‐ (Rupees Ninety-Seven Crores Only)."

It added, "And accordingly, it was also decided to include/revise the relevant resolution seeking members approval for the aforesaid preferential issue in the notice calling 28th Annual General Meeting of the company, on September 30, 2023 at 11:30 A.M, copy of the notice shall be circulated separately."

The shares of Vikas Lifecare on Thursday rallied, hits new 52-week high. The stock closed 5.67% higher at Rs 5.03 per share on the BSE. It surges 13.54% in the past 1 week. The stock has a market cap of Rs 722.78 Crore.

AR Ramachandran from Tips2trades said, "Vikas Lifecare stock price is overbought on the Daily charts with next resistance at 5.95. Investors should book profits at current levels as a close below support of 4.15 could lead to 2.75 in the near term."