Penny stock under ₹5 jumps 10% after this CAPEX update. Do you own? | Stock Market News
Source: Live Mint
A penny stock, Vikas Lifecare, surged almost 10 per cent in intraday trade on BSE on Friday, December 6, in an otherwise weak market. The stock was witnessing strong investor interest as its trade volume was over 1 crore around 12:05 pm on Friday. Vikas Lifecare share price opened at ₹4.40 against its previous close of ₹4.32 and surged as much as 9.7 per cent to the level of ₹4.74. Around 12:05 pm, the stock traded 5.8 per cent higher at ₹4.57 apiece. Equity benchmark Sensex was almost flat at 81,816 at that time.
The penny stock swung to action a day after it announced the establishment of a new manufacturing facility under the Rajasthan Investment Promotion Scheme (RIPS).
Vikas Lifecare news
In an exchange filing on Thursday, December 5, the company said: “Vikas Lifecare is pleased to announce the establishment of a new, state-of-the-art manufacturing facility in the Shahjahanpur RIICO Industrial Area, spanning 20,000 square feet, under the Rajasthan Investment Promotion Scheme (RIPS).”
“Scheduled to commence operations in December 2024, this facility will specialise in manufacturing advanced commodity compounds, including EVA, ATH, Thermoplastic Rubber, and Thermoplastic Elastomer. This strategic initiative reaffirms the company’s commitment to leveraging RIPS incentives for driving profitability and fostering regional development,” said the company.
Vikas Lifecare manufactures and trades polymer and rubber compounds and speciality additives for plastics, synthetic and natural rubber.
Its subsidiary, Genesis Gas Solutions Pvt. Ltd., is engaged in the business of smart gas meters being supplied to all the major gas distribution companies for domestic and commercial consumers.
Vikas Lifecare share price trend
The stock has been under pressure this year. As of December 5 close, it had declined 13 per cent in the current calendar year.
It hit a 52-week high of ₹7.92 on January 23 and a 52-week low of ₹4.05 on November 18 this year.
On a monthly scale, the stock suffered a loss of over 7 per cent in November. In December so far, it has gained 6 per cent.
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