Vikas Lifecare shares jump 9% after subsidiary bags order from IGL

Shares of Vikas Lifecare extended their gains as the stock rose about 9 per cent during the trading session on Thursday after the company's subsidiary bagged an order from Indraprastha Gas (IGL) The company informed about the same via an exchange filing.

Vikas Lifecare’s wholly owned subsidiary Genesis Gas Solutions had received its first-ever order for ultrasonic gas meters, the company said in the filing. However, the company did not disclose the amount of the order.

Ultrasonic meters are considered the highest in efficiency in terms of accuracy and reliability, as these meters derive the volume flow of the gas by measuring the transit times of high-frequency sound waves. The Ultrasonic meters are eminently required at Large Diameter Gas Pipe Lines where it is a commercial loss to use the mechanical drive meters.

Following the announcement, shares of Vikas Lifecare surged 9 per cent to Rs 3.59 on Thursday, before giving up its gains partially. The scrip had settled at Rs 3.30 in the previous. The company was commanding a market capitalization of more than Rs 490 crore.

Shares of Vikas Lifecare have surged more than 26 per cent in the current week. The scrip has gained about 15 per cent in the current month so far. However, despite the recent rise, it is down about 30 per cent in the current year so far.

Genesis had earlier received orders for ultrasonic Meters for Field Regulating Skid (FRS) for city gas distribution companies during April 2023. Genesis was co-founded in 2017 specifically focussed on the evolving city gas distribution sector.

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 materials to ONGC.

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