Vikas Lifecare shares rises 12% ahead of board meeting for fundraising plans

Shares of Vikas Lifecare surged about 12 per cent during the early trading session on Monday ahead of its meeting of the board of directors later this week to consider preferential issue to the promoters of the company. The company informed about the same through an exchange filing on Saturday. The company board is scheduled to meet on Thursday, August 31, 2023 to issue securities, convertible instruments on preferential basis to Vikas Garg, the promoter of the company in cash, at premium, for an amount not exceeding Rs 40 crore, the company said in its exchange filing. Following the announcement, shares of Vikas Lifecare surged about 12 per cent to Rs 3.80 on Monday, before giving up its gains partially. The company was commanding a total market capitalization close to Rs 550 crore. The scrip had settled at Rs 3.40 in the previous trading session on Friday. Vikas Lifecare returned to black in the June 2023 quarter on a quarter-on-quarter (QoQ) basis as the company reported a standalone net profit at Rs 13.31 crore, compared to a net loss of Rs 25.97 crore in the March 2023 quarter. On a year-on-year (YoY) basis, its bottomline jumped manifold from a profit of Rs 2.34 crore in the quarter ended on June 30, 2022. Total Income of the company rose 26 per cent QoQ and 20 per cent YoY to Rs 106.31 crore in the first quarter of the ongoing fiscal. Its total income came in at Rs 84.15 crore in the March 2023 quarter and Rs 88.87 crore in the June 2022 quarter. Operating profit came in around Rs 4 crore with an operating profit margin around 4 per cent in Q1FY24.

Also read: Hot stocks on August 28, 2023: Texmaco Rail, Zomato, Jio Financial, Suzlon Energy and more Earlier this month, Vikas Lifecare announced that it has acquired a majority stake, 98 per cent, in MSR Apparels for nearly Rs 12.5 crore. MSR Apparels is engaged in the manufacturing of all types of textile garments and clothing accessories. Post the cash consideration deal, MSR Apparels has become a subsidiary of the company. Vikas Lifecare is engaged in various business segments including polymer & rubber commodity, compounds and master-batches. It also manufactures up-cycled compounds from industrial and post-consumer waste and scrap materials. It also provides a wide variety of base polymers and commodity raw material to ONGC.  

Also read: RIL AGM: Jio Financial shares snap 4-day losing streak, climb 4%

Also read: Brightcom Group shares news on CMD, CFO resignations; stock in focus after ED raids