Recycling firm Vikas Lifecare's board approves plan to raise up to Rs 40 crore

Recycling player Vikas Lifecare on Friday said its board has approved raising of up to Rs 40 crore through allotment of convertible warrants on a preferential basis.

The proposal is subject to the approval of the shareholders at the next annual general meeting which has been scheduled for later this month, the company said in a regulatory filing.

The board has approved allotment of up to ten crore compulsorily convertible warrants, at premium, for cash to promoter of the company on preferential basis at an issue price of Rs 4 per warrant aggregating up to Rs 400 million, it said.

In a separate statement, the company said it has acquired substantial stake in MSR Apparels Private Limited, which is into manufacturing of garments and clothing accessories, for Rs 12.5 crore.

''We have acquired 98 per cent equity of MSR from existing promoters and shareholders in an all-cash deal for a total consideration of Rs 125 million, thus it became a subsidiary company,'' it said.

Vikas Lifecare recycles plastic waste to manufacture pallets and interlocking tiles for industrial applications.