Vikas Lifecare shares rise 8% as company's first tranche of QIP opens

Shares of Vikas Lifecare Ltd surged more than 8 per cent during the trading session on Tuesday after the company received nod from the exchange to raise funds via qualified institutional placement (QIP) route on Monday and company board approved the first tranche of the fund raising plans.

The company board in its meeting held on Monday, January 1, 2024, approved the size of present trench, being first tranche of QIP not exceeding to Rs 50 crore and the remaining amount of Rs 50 crore will be raised by the company in second/subsequent trench. The company was given a nod to raise amount not more than Rs 100 crore, in the exchange filing.

The board also approved the floor price for the Issue at Rs 5.02 per equity share and adopted the preliminary placement document dated January 1, 2024, together with the application form in connection with the issue. The issue was authorized to open on January 1, 2024.

Following the announcement, shares of Vikas Lifecare gained about 8.45 per cent on Tuesday to Rs 5.38, with a total market capitalization of more than Rs 750 crore. The scrip had previously settled at Rs 4.96 on Monday. The stock has surged about 102 per cent from its 52-week low at Rs 2.66 hit in May 2023.

The company board has approved fundraising via the QIP route in May 2023, whereas the shareholders of the company passed the resolution in September 2023 in the annual general meeting of the company. Both the stock exchanges, namely BSE and NSE gave their in-principle approvals on January 1, 2024 for QIP Issue.

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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