Vikas Lifecare Share In Green After FPI Picks Up Stake; Scrip Jumps 115% In 6 Months

Vikas Lifecare's shares saw a rise of 4.58% on Thursday after rising from their opening price of Rs 6.80 to an intraday high of Rs 6.85 on the BSE. The rise in stock price took place after the Board granted 10,41,65,000 Equity Shares to institutional buyers who met the eligibility requirements.

The company announced the opening of the issue (Qualified Institutions Placement) on January 1, 2024, the funds raising committee of the company, at its meeting held on January 10, 2024. The approval of the closure of the issue made post receipt of application forms and the funds in the escrow account from the eligible qualified institutional buyers in accordance with the terms of the issue.

The Board also determined and approved the issue price at Rs 4.80 per equity share (including a premium of Rs 3.80 per equity share), floor price of Rs 5.02 per equity share as well as approved and finalized the Confirmation of Allocation Note (CA) to be sent to eligible qualified institutional buyers, intimating them of the allocation of equity shares pursuant to the issue.

The allotment of 10,41,65,000 equity shares at the issue price to the eligible qualified institutional buyers in accordance with the terms of the issue; Coeus Global Opportunities Fund, AG Dynamic Funds Limited and Nakshatra Stressed Assets Fund are the list of FPI allottees who participated in equity shares offered in the present tranche/Issue.

4,16,50,000 equity shares or 39.98% of the total issue size has been allotted to Coeus Global Opportunities Fund, 3,17,90,000 of shares or 30.52% of the total issue size allotted to AG Dynamic Funds Limited and 3,07,25,000 equity shares or 29.50% of the total issue has been allocated to Nakshatra Stressed Assets Fund.

Vikas Lifecare said last week that it had purchased a new plot of land measuring roughly 1800 square metres close to the company's current factories in the RIICO Industrial Area of Shahjahanpur, Rajasthan, with the intention of increasing capacity and bolstering manufacturing operations for the company's traditional business of producing polymers and rubber compounds.

According to the corporation, the equipment needed to increase manufacturing capacity would cost an additional Rs 23 crore, while the overall cost of developing the land and building will be about Rs 3 crore. The new extension is anticipated to boost gross revenues by an additional Rs 60 crore and will be available for use over the next three to four months, it continued.