Vikas Lifecare Ltd is a small-cap company with a market capitalization of 679.01 Cr that operates in the commercial services industry. The primary business of the company is the production and sale of PVC and plastic products. The Board of Directors of Vikas Lifecare Limited today approved an investment in Kohinoor Foods of up to Rs. 250 crore, which resulted in a 6% increase in Vikas Lifecare shares.
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.”
With this acquisition, Vikas Lifecare will be able to expand its product line and strengthen its market position in the FMCG industry, which is still in its early stages. This investment aligns with the company’s defined long-term growth strategy, which focuses on developing a strong product offering.