New Delhi [India], May 31: Vikas Lifecare Limited, formerly known as Vikas Multicorp Limited, will raise Rs 200 crore (2,000 million) through qualified institutional placement (QIP).
The company will raise funds in tranches. In the first tranche, the board has approved raising Rs 50 crore (Rs 500 million). The remaining Rs 150 crore (Rs 1,500 million) will be raised via subsequent tranches by the company.
The company board has approved and fixed the floor price for the issue at Rs 4.20 per equity share, with a face value of Re 1 each. The price has been derived by the pricing formula as prescribed under the SEBI ICDR Regulations.
The issue price will be determined by the company in consultation with the book running lead managers appointed for the issue. The company may, at its discretion, offer a discount of not more than 5 per cent on the floor price for the issue.
The company’s fund-raising committee will meet to consider and approve the issue price, including a discount, if any, permitted under the SEBI’s regulations. The equity shares will be allotted to qualified institutional buyers.
The company has received the principal approval for the same from its board and shareholders through postal ballots and stock exchanges – namely BSE and National Stock Exchange (NSE).
Vikas Lifecare Limited engages in the trading of various chemical compounds, polymers, PVC resins, plastic granules, and products related to the plastic industry in India. It operates through Real Estate, Trading- Polymers, Trading-Cashew Nuts, and manufacturing divisions.
Incorporated in 1995, the Delhi based company is also involved in the real estate business; and the manufacture of recycled material for automotive, packaging, sheathing, and textile industries.
Shares of Vikas Lifecare, trading and distributing company, settled at Rs 4.96 on Monday after rising 5 per cent, hitting its daily circuit limit.