Penny Stock Below Rs 10 Hits Upper Circuit On Approval of Subsidiary By Dubai Govt

On Monday, the shares of Vikas Lifecare opened higher at Rs 5.10 apiece but later the penny stock seen locked in a 3% upper circuit limit at Rs 5.15 apiece on the NSE after the company informed stock exchanges that the Department of Economic and Tourism, Dubai UAE(the DET), Government of Dubai, has approved incorporation of wholly owned subsidiary in the name of "Vikash Life Care Investment Management L.L.C" and issued a Certificate of Incorporation for the same.

Vikash Life Care Investment Management L.L.C is now a wholly owned subsidiary of Vikas Lifecare Limited. The subsidiary is involved in management and investments in commercial enterprises. Through a cash transaction, Vikas Lifecare Limited and its nominees have subscribed for 100% of the subsidiary's equity.

Vikas Lifecare Limited made an announcement on Monday, April 22, about the acquisition of substantial orders for its Agro Products Division. The company has strengthened its position in the premium and organic rice marketplaces by securing an order for rice worth around Rs 500 million. Premium rice forms account for Rs 400 million of the current orders, with demands for organic rice breeds making up the remaining Rs 100 million. The company's Agro Products Division, aiming for a YoY growth of more than 20%, has set an ambitious target of Rs 4500 million for the current fiscal year, up from Rs 3600 million in the previous FY. The firm had previously acquired processing facilities for agricultural products in Uttar Pradesh and Karnataka, which had accelerated the company's growth and allowed it to serve a broader customer base.

Vikas Lifecare said last week via its BSE that 5,61,00,000 warrants had been converted into an equivalent number of firm equity shares. Earlier this year, after investing Rs 150 million to acquire 7.5% equity in the well-known news channel Bharat Express News, bought a substantial stake in Benchmark News Lab Private Limited.

The Board of Directors of the company in their meeting held on Thursday, April 18, 2024, considered and approved the allotment of equity shares on conversion of 5,61,00,000 warrants into 5,61,00,000 equity shares of face value of Re. 1/- each at an issue price of Rs. 4/- each to promoters and non-promoters, public category, on a preferential basis, upon receipt of the balance amount aggregating to Rs. 16.83 Cr.

Synthetic and natural rubber compounds, polymer blends, and specialty additives for plastics are produced and sold by Vikas Lifecare Limited (VLL).