Penny stock under ₹10: Vikas Lifecare shares jump 18% after announcement of land acquisition for capacity expansion

Vikas Lifecare share price today opened upside and went on to touch an intraday high of ₹6.10 apiece levels on NSE, logging an intraday gain of around 18 per cent against its Wednesday close of ₹5.15 per share. In an exchange filing on Wednesday, Vikas Lifecare Ltd informed Indian stock market exchanges about the acquisition of new land for capacity expansion.

The new land acquisition is worth ₹3 crore whereas the capacity expansion will cost ₹23 crore, the company said in an exchange filing.

Vikas Lifecare news

Vikas Lifecare informed Indian stock market bourses about this development saying, “Vikas Lifecare Limited is pleased to announce that for the purpose of capacity expansion and augmentation of manufacturing operations for company’s conventional business of Polymer & Rubber Compounds we have acquired a new land piece measuring about 1800 Sq. Mtr. adjoining to the existing factories located at RIICO Industrial Area, Shahjahanpur, Rajasthan.”

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“The total cost of acquisition and development of the land and the building thereon will be about INR 30 Million ( ₹3 crore), whereas the equipment for the expansion of production capacity will cost another INR 230 Million ( ₹23 crore),” Vikas Lifecare added.

The new expansion will be ready to be utilized within the next 3 to 4 Months and is expected to add ₹60 crore to the gross revenues from the compounding business segment.

VLL is working in all directions to tap into the vertical as well as horizontal growth options via expanding conventional businesses and venturing into new business segments to fuel the fast-growth plans through various routes including merger and acquisition of going businesses from diverse fields.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decision.

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Published: 04 Jan 2024, 02:09 PM IST