Shares of Vikas Lifecare Ltd rose during the early trading session on Thursday after the company announced to raise funds via QIP route. The company raised a total of Rs 50 crore via the first tranche of institutional placement, while it will raise another Rs 50 crore in the subsequent trench. In an exchange filing with the bourses, the company said that its board has approved the closure of the QIP issue on Wednesday, January 10, 2024, post receipt of application forms and the funds in the escrow account from the eligible qualified institutional buyers in accordance with the terms of the issue. The company has issued a total of 10,41,65,000 equity shares to qualified institutional bidders at an issue price of Rs 4.8 per share, the filing added. However, the floor price of the issue was decided at Rs 5.02 apiece. The company board also approved and finalized the confirmation of allocation note (CAN) to be sent to eligible qualified institutional buyers, it added. Following the announcement, shares of Vikas Lifecare jumped 4.45 per cent to Rs 6.83 on Thursday, commanding a total market capitalization close to Rs 1,000 crore. The scrip has settled at Rs 6.54 in the previous trading session on Wednesday. The stock is up 130 per cent from its 52-week lows.
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The company has allotted 4,16,50,000 equity shares or 39.98 per cent of QIP to Coeus Global Opportunities Fund, while AG Dynamic Funds has got 3,17,90,000 equity shares or 30.52 per cent of the issue. Remaining 3,07,25,000 equity shares or 29.50 per cent of the issue has gone to Nakshatra Stressed Assets Fund. All three investors belong to the FPI category. Earlier this month, Vikas Lifecare announced acquisition of land in RIICO Industrial Area, Shahjahanpur, Rajasthan for the purpose of capacity expansion and augmentation of manufacturing operations for the company's conventional business of polymer and rubber compounds. 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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