Shares of Vikas Lifecare Limited (VLL), a penny stock currently trading under Rs 5, have been gaining attention following its Board of Directors’ decision to raise Rs 200 crore through multiple modes, including Qualified Institutional Placement (QIP), Foreign Currency Convertible Bonds (FCCB), Further Public Offering (FPO), and Rights Issue.
This move aims to finance new growth opportunities and solidify the company’s position in its diverse market segments.
Vikas Lifecare Limited: Key Highlights
- Fundraising Announcement: The company’s Board has approved increasing its authorized share capital from Rs 200 crore to Rs 235 crore to facilitate the fundraising. Necessary resolutions will be passed via postal ballots to seek shareholders’ approval.
- Share Performance: On Friday, VLL’s shares rose 1.81%, reaching an intraday high of Rs 4.51. The stock’s 52-week range spans from a high of Rs 7.92 to a low of Rs 4.05.
Sustainability and Innovation Initiatives
Earlier, VLL collaborated with DRDO to commercialize biodegradable granule technology for eco-friendly packaging. This partnership aligns with the global demand for sustainable alternatives to plastic.
By leveraging DRDO’s expertise and its own manufacturing capabilities, VLL is contributing to reducing plastic pollution and promoting a circular economy.
Furthermore, the establishment of a new manufacturing facility in Rajasthan underscores VLL’s commitment to expanding its operational capacity and enhancing profitability.
About Vikas Lifecare Limited
VLL is a diversified company with expertise in:
- Polymer and Rubber Compounds: Specializing in specialty additives.
- Smart Gas Metering Solutions: Through its subsidiary, Genesis Gas Solutions, a leader in India’s market.
- Environmental Sustainability: Transforming waste into valuable products and meeting Extended Producer Responsibility (EPR) obligations.
Business Expansion Highlights
- Recent Partnerships: A joint venture with IGL strengthens VLL’s position in the smart gas metering sector.
- B2C Segment Growth: Expanding into FMCG, agro, and infrastructure products.
- Film Production: Entering the entertainment sector to explore new opportunities and content creation.
Financial Performance
Quarterly Results (Q2FY25 vs. Q2FY24):
- Net Sales: Increased by 46.5% to Rs 134.88 crore from Rs 92.09 crore.
- Net Profit: Reported at Rs 2.15 crore, a 174% improvement from a net loss of Rs 2.91 crore.
Annual Results (FY24 vs. FY23):
- Net Sales: Decreased by 6.4% to Rs 445.75 crore from Rs 476.05 crore.
- Net Profit: Stood at Rs 13.95 crore, a significant recovery from a net loss of Rs 15.55 crore, marking a 190% increase.
Shareholding Trends:
- In September 2024, Foreign Institutional Investors (FIIs) increased their stake to 0.50%, up from 0.28% in June 2024.
Market Outlook
With a market capitalization of Rs 818 crore, VLL’s strategic fundraising, partnerships, and diversification efforts make it a stock worth watching. The company’s focus on sustainability, innovation, and financial recovery positions it for long-term growth.
Disclaimer: This article is for informational purposes only and should not be considered investment advice.
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