Penny Stock Below Rs 5 Approves Rs 400 Mn Fund Raise Via Preferential Issue

The Board of Directors of Vikas Lifecare Ltd authorised fundraising via the issuance of a preferential issue, the company said on Thursday. In its regularly scheduled meeting on Thursday, the small-cap board declared fundraising not to exceed Rs 40 crore by the issue of new warrants on a preferential basis. The price per equity share for the preferential issuance has been set at Rs 4.

The Board of Directors have approved "to allot up to 10,00,00,000 (Ten Crores only) Compulsorily Convertible Warrants ('Warrants'), at premium, for cash to Mr. Vikas Garg, Promoter of the Company on preferential basis at an issue price of Rs. 4/- (Rupees Four Only) per Warrant, subject to shareholders' and other statutory/regulatory approvals, aggregating amount of up to Rs. 400 Millions (the issue). Mr. Vikas Garg, Promoter of the Company shall be entitled to get these warrants converted into equal number of Equity Share of Re. 1/- of the Company by paying the full issue price of Rs. 4/- per Warrant (including a premium of Rs. 3/- per Equity Shares) within 18 months from the date of warrants allotment," said Vikas Lifecare in a stock exchange filing.

"These warrants shall be issued in terms of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018; provisions of the Companies Act, 2013 and rules made thereunder, all other applicable guidelines, rules, regulations and amendments thereof. Further, allotment of Equity Shares consequent to the conversion of these warrants shall be made in compliances with the requirements of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011," according to a regulatory filing.

On Friday the shares of Vikas Lifecare opened on the BSE at Rs 4.35 apiece down by 2.03% over the previous close of Rs 4.43. The stock made a 52-week-high of Rs 5.40 on (11/10/2022) and a 52-week-low of Rs 2.66 on (24/05/2023). During Q1FY24, the company recorded promoter shareholding of 11.40%, FIIs stake of 0.02% and public stake of 88.59%.