Vikas Lifecare shares rally 10% as company acquires new land in Rajasthan

Shares of Vikas Lifecare Ltd surged about 10 per cent during the trading session on Thursday after the company announced the acquisition of new land in Rajasthan to expand its operations. The company informed about the same through an exchange filing on Wednesday.

"Vikas Lifecare is pleased to announce that for the purpose of capacity expansion and augmentation of manufacturing operations for company’s conventional business of polymer and rubber compounds, we have acquired a new land piece measuring about 1800 square meters adjoining to the existing factories located at RIICO Industrial Area, Shahjahanpur, Rajasthan," said the filing.

The total cost of acquisition and development of the land and the building will be around Rs 3 crore, whereas the equipment for the expansion of production capacity will cost another Rs 23 crore, said the company. The new expansion will be ready to be utilized within the next three to four months and is expected to add an additional Rs 60 crore to the gross revenues, it added.

Following the announcement, shares of Vikas Lifecare surged about 9.67 per cent to Rs 5.67 on Thursday, commanding a total market capitalization of more than Rs 800 crore. The scrip had settled at Rs 5.17 in the previous trading session on Wednesday.

Shares of VIkas Lifecare have gained about 115 per cent from its 52-week low at Rs 2.66, while the stock has rallied about 85 per cent in the last six months. The stock is up 20 per cent in the last one year, while it has surged 15 per cent in the last one month period.

Vikas Lifecare is working in all directions to tap into the vertical as well as horizontal growth options via expanding conventional businesses and venturing into new business segments to fuel the fast-growth plans through various routes including merger and acquisition of going businesses from diverse fields, said the company.

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.

Also read: Up 1,000% in 180 days, Jai Balaji shares hit 5% upper circuit limit for 2nd day; what management says 

Also read: Top 5 stocks to watch on January 4, 2024: Adani Ports, Vedanta, Torrent Power and more