Penny Stock Approves Fund Raising Via QIP, Shares Soar 145% In 6-Months

Board of Directors of Vikas Life Care Limited approved the proposal to raise funds through Qualified Institutional Placement. The company now wants to raise Rs 50 crore with the help of a second tranche of QIP. The company has raised Rs 50 crore in the first issue of QIP.

Fundraising Via QIP: The board of Vikas Life Care Limited has approved raising Rs 50 crore through qualified institutional placement at a floor price of Rs 7.08 per equity share.

According to the BSE filing of the company dated Jan 29, 2024, "We wish to inform that that pursuant to the approval of the board of directors of the Company (the "Board"), at its meeting held on May 23, 2023, and the shareholders resolution passed on September 30, 2023 in Annual General Meeting and in-principle approval(s) received from both the Stock Exchanges, namely BSE Limited dated January 29, 2024 and National Stock Exchange of India Limited dated January 1, 2024 for QIP Issue, the Fund Raising Committee (the 'Committee'), at its meeting held today i.e. January 29, 2024 which commenced at 6:10 P.M. and concluded at 6:35 P.M., has inter alia:
a) approved size of present trench (being 2nd Tranche of QIP not exceeding to ₹ 500 million and the remaining amount of ₹500 million already raised by the Company in Trench-I, Issue amounting not exceeding to ₹1000 Million as approved by the members in 28th Annual General Meeting dated September 30, 2023."

Acquisition Of 60% Stake In Dubai's SKY 2.0 Club For USD 79 Mn: Vikas Lifecare has recently entered into the entertainment and hospitality business. This month, the company acquired 50 per cent stakes in Portfolio Managing Events LLC, Dubai, UAE (PME Entertainment) valued at an enterprise value of Rs 201 crore.
According to the exchange filing, "The acquisition is a share swap deal signed between Vikas Lifecare Limited and the holding company M/s Blue Sky Event Hall FZ-LLC, Dubai, for acquisition of 60% stakes in the SKY 2.0 Club business and all future business ventures in the relevant business segment at an enterprise valuation of about USD 130 Million. The acquisition process shall be completed within this Fiscal Year."

Vikas Lifecare Stock Performance & Return: Last trading price of Vikas Lifecare shares on BSE is Rs 7.48 per share with intraday decline of 0.80% as on January 30, 2024. The 52-week high price of Vikas Lifecare shares on BSE is Rs 7.92 per share and 52-week low price is Rs 2.66 per share, respectively. The company has a market capitalisation of Rs 1152.74 crore.

Vikas Lifecare shares offered return of 51% year-to-date, soared 145% in last 6-months, and jumped 73% in last 1-year. In last 2-years, Vikas Lifecare shares declined 15% and offered return of 145% in last 3-years.

Vikas Lifecare About: Vikas Lifecare Limited (VLL) is engaged in manufacturing and trading of Polymer and Rubber compounds and Specialty Additives for Plastics, Synthetic & Natural Rubber. Polymer & Rubber Commodity (bulk consumption) Compounds and Master-Batches (Manufacturing up- cycled compounds from industrial and post-consumer waste materials like EVA, PVC, PP, PE etc.), contributing to the Environment Protection initiatives from the Government of India and fulfilling the mandated EPR obligations for the conglomerates consuming hundreds of thousands of tons of plastic products and packaging materials.

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