Vikas Lifecare shares jump 7% as company ventures into entertainment biz

Shares of Vikas Lifecare Ltd surged during the trading session on Thursday after the company announced plans to venture into the entertainment industry, acquiring a stake in a Dubai based company. The company informed about the same through an exchange filing during the session.

Vikas Lifecare has ventured into newer business segments, into the entertainment and hospitality business segment making a sizable investment in acquisition of 50 per cent stakes in Portfolio Managing Events LLC, Dubai, UAE (PME Entertainment), said the company in the exchange filing.

The acquisition is a share swap deal signed between VLL and the stakeholders at Portfolio Managing Events LLC, evaluated at the enterprise value of Rs 201 crore. This acquisition will make way for the company to explore new exciting opportunities in the entertainment and event organising industry, it added.

Following the announcement, shares of Vikas Lifecare rose about 6.65 per cent to Rs 7.05 during the trading session on Thursday, commanding a total market capitalization of more than Rs 1,000 crore. The scrip had settled at Rs 7.05 in the previous trading session on Wednesday.

Vikas Lifecare will buyout the half of the equity of PME Entertainment from its existing shareholders through a share swap deal. Vikas Lifecare will be investing in excess of Rs 100 crore for this strategic acquisition, said the company in the exchange filing with the bourses on Thursday.

PME Entertainment is a global entertainment company, based in Dubai, UAE. PME has been producing concerts and events for notable figures and luminaries such as HRH King Charles of UK, The United Nations General Assembly in New York City, the Norwegian Nobel Committee, and Nobel Peace Prize Laureates.

Vikas Lifecare is engaged in manufacturing and trading of polymer and rubber compounds and specialty additives for plastics, synthetic and natural rubber. The company has most recently diversified its business interests beyond raw materials and forayed into the B2C segment.

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