Penny stock rallies 6% as Board declares to acquire Kohinoor Foods for ₹250 Cr

The company has said in a stock exchange filing that “In line with the Company’s pre-defined long-term growth strategies, the Board of Directors of Vikas Lifecare Limited accorded their approval to invest up to Rs. 250 Crores in Kohinoor Foods Limited, with an objective of broad-basing the Company’s product portfolio, and strengthening its positioning in industry matrix, complimenting and supplementing the existing business lines of the Company by way of fresh equity, quasi capital, or any combination thereof, and to enter into definite agreement with the existing promoters of Kohinoor Foods Limited for acquiring substantial stake in it, subject to necessary statutory approvals and due diligence.”

Mr. S. K. Dhawan, Managing Director of the Company commented “We are delighted to announce Board’s decision to make a strategic investment of upto Rs. 250 Crores in Kohinoor Foods Limited, a legacy of almost 5 decades, their pioneer and unparallel positioning in Basmati Rice and processed Food Products industry across the globe.”

Vikas Lifecare will be able to expand its product line and strengthen its market position in the FMCG industry, which is presently in its beginnings thanks to this acquisition. This investment is consistent with the company’s defined future-oriented growth strategy, which focuses on developing a strong product offering.

On a standalone basis, the net revenue of Vikas Lifecare grew by 74.59% YoY to Rs. 34,626.48 lakhs in Q3FY23 as compared to Rs. 19,833.44 lakhs in Q2FY22 and on a consolidated basis net revenue grew by 80.48% YoY to Rs. 35,794.90 lakhs in the quarter ended December 2022 as compared to Rs. 19,833.44 lakhs in the quarter ended December 2021. In comparison to 978.34 lakhs in Q3FY22, EBIDTA increased by 55.59% to reach Rs. 1,522.17 lakhs on a standalone basis in Q3FY23 and on a consolidated basis EBIDTA stood at Rs. 1443.96 lakhs in Q3FY23 compared to Rs. 978.34 lakhs in Q3FY22, up by 47.59% YoY. On a standalone basis, net profit reached Rs. 1,288.57 lakhs in Q3FY23 compared to Rs. 577.77 lakhs in Q3FY22, up by 123.02% YoY and on a consolidated basis net profit of Vikas Lifecare reached Rs. 1129.79 lakhs in Q3FY23 as compared to Rs. 565.29 lakhs in Q3FY22, up by 99.86% YoY.

On the BSE, the shares of Vikas Lifecare Limited closed today at ₹4.72, up by 6.31% from the previous close of ₹4.44.