Beating all the odds amid headwinds led by China's resurgence, macro challenges, and weak demand, small-cap recycling player Vikas Lifecare has announced plans to raise funds on a preferential basis. Based out of Delhi, Vikas Lifecare is a del-credere agent of the state-run Oil and Natural Gas Corporation (ONGC). It supplies a wide variety of base polymers and commodity raw materials to the public sector undertaking under the Ministry of Petroleum and Natural Gas.
According to a BSE filing, its board will meet next on Thursday to approve the issuance of securities, and convertible instruments on the preferential basis not exceeding Rs 400 million to promoter Vikas Garg. Besides, it will also consider increasing authorised capital and consequent alteration in the memorandum of association (MoA).
A preferential issue is a corporate event through which a listed firm raises funds by issuing warrants to the shareholders. Under The Companies Act, 2013, listed companies can raise funds via methods like a preferential allotment, right issue, and sweat equity shares among others.
Earlier, a PTI report said that Vikas Lifecare will set up a smart meter manufacturing plant in a joint venture with the country's leading city gas distribution company, Indraprastha Gas Limited (IGL). The joint venture will invest Rs 110 crore to set up India's first integrated smart meter manufacturing unit.
IGL will hold a 51 per cent stake in the joint venture, which will manufacture gas meters and fully manufactured gas meters, sell, distribute, and supply gas meters, handheld unit (HU), and data concentration unit (DCU).
Its subsidiary, Genesis Gas Solutions, a pioneer in smart gas and water metering, has also secured orders for supplying Ultrasonic Gas Meters to Indraprastha Gas Limited. Genesis Gas Solutions has approximately 20 per cent of the domestic gas metering share in the country.
Ultrasonic meters are considered the highest in efficacy in terms of accuracy and reliability. The upcoming manufacturing unit is crucial as it will provide impetus to the government's target of installing 250 million smart meters by 2025 in the country as part of its effort to modernize the country's energy infrastructure.
Meanwhile, its shares on Tuesday closed at Rs 3.87 apiece, according to information available on the BSE website.
Latest Business News
