Vikas Lifecare shares are one of the penny stocks under 10 rupees, and the small-cap firm may have more stock float in the approaching times. The board of directors of the penny stock under 10 has approved the issuance of an additional 10 crore warrants convertible into stocks on a preferential basis. The preferred shares were priced at 4 per share, which represents a roughly 7% premium over the current Vikas Lifecare share price of 4.30 on the NSE. The goal of this preference issuance is to raise funds in the amount of 40 crore.
Details about the Vikas Lifecare fundraiser
The small-cap company informed Indian stock market bourses about the fundraising approval, saying, “In terms of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform you that the Board of Directors of the Company in their meeting held today, i.e. on Thursday, August 31, 2023, at the Registered Office of the Company situated at G-1, 34/1, East Punjabi Bagh, New Delhi -110026, inter-alia: 1] Preferential Allotment to Promoter: up to 10,00,00,000 (Ten Crores only)
Compulsorily Convertible Warrants (‘Warrants’), at a premium, for cash to Mr. Vikas Garg, Promoter of the Company, on a preferential basis, at an issue price of Rs. 4/- (Rupees Four Only) per Warrant, subject to shareholder and other statutory/regulatory approvals, up to Rs. 400 Million (the issue).”
“Mr. Vikas Garg, Promoter of the Company, shall be entitled to get these warrants converted into an equal number of Equity Shares of Re. 1/- of the Company by paying the full issue price of Rs. 4/- per Warrant (including a premium of Rs. 3/- per Equity Share) within 18 months from the date of warrants allotment,” the small-cap company added.
These warrants will be granted by the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018; the provisions of the Companies Act, 2013 and the rules made thereunder; and all other applicable guidelines, rules, regulations, and amendments. Furthermore, the issuance of Equity Shares resulting from the conversion of these warrants must be done by the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
Vikas Lifecare shares are traded on both the NSE and the BSE. It closed on Friday with a market capitalization of 617 crore and a transaction volume of 2,98,94,549 on the NSE. On the NSE, it has a 52-week high of 5.40 per share and a 52-week low of 2.70 per share.
