Vikas Lifecare shares rise as its subsidiary forms joint venture with IGL

Shares of Vikas Lifecare rose 3 per cent during Monday's trading session after the company announced entering into a joint venture (JV) agreement with Indraprastha Gas (IGL), via its subsidiary, to set up a new manufacturing unit.

“Vikas Lifecare’s subsidiary Genesis Gas Solutions enters into a joint venture agreement with Indraprastha Gas Limited (IGL) to set up India’s first Integrated Smart Meter Manufacturing Plant," said the company in an exchange filing. The plant will incur a capital expenditure of Rs 110 crore, it said.

The proposed joint venture is named IGL Genesis Technologies and was incorporated on June 15, 2023, the company added in the exchange filing.

Following the announcement, shares of Vikas Lifecare surged about 3 per cent to Rs 3.15 on Monday, commanding a total market capitalization of more than Rs 450 crore. The scrip had settled at Rs 3.06 on Friday. The stock has gained about 20 per cent from its 52-week low in May 2023.

In terms of the joint venture agreement, IGL has subscribed 5,10,000 equity shares, representing 51 per cent of the capital, whereas Genesis subscribed 4,90,000 equity shares, representing 49 per cent of the capital of the newly incorporated entity.

Other than setting up the manufacturing facility for gas meters, the company will also carry on the business of assembling and manufacturing of SKD gas meters and fully manufactured gas meters;  selling, distributing and supplying gas meters,  and to carry on the business of providing services related to meter asset management.

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.  

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