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Penny stock with strong foreign institutional investors' (FIIs') holding hit upper circuit today in early morning deals. The small-cap stock with a market cap of around 659 crore attracted strong buying interest after announcement of Qualified Institutions Placement or QIP issue at a discounted price of 4.65 apiece levels. This penny stock below 5 has emerged favourite FII stock as well. FPIs of well repute like Mauritius-based AG Dynamic Funds and Citrus Global Arbitrage Fund have made big investment in this penny stock. In fact, AG Dynamics Funds raised stake in the penny stock during July to September 2022 from 2.19 per cent to 3.90 per cent.

The small-cap company announced QIP issue last week at a discounted price, which led to spurt in trade volume of the penny stock. As per the exchange communication of the small-cap penny stock, the company has informed Indian bourses, "We wish to inform you that the Board of Directors of the Company, at its meeting held today i.e. November 24, 2022, has inter alia approved the following: In furtherance to company’s earlier intimation dated November 15, 2022 for opening of the QIP Issue (Qualified Institutions Placement of 10,75,26,881 equity shares of face value of 1/-): a) approved the closure of the Issue today (i.e. November 24, 2022) post receipt of application forms and the funds in the escrow account from the eligible qualified institutional buyers in accordance with the terms of the Issue; b) determined and approved, in accordance with the SEBI ICDR Regulations, the issue price at 4.65 per Equity Share (including a premium of 3.65 per Equity Share), which is at a discount of 0.23 per Equity Share i.e. ~4.71% to the floor price of 4.88 per Equity Share (determined according to the formula prescribed under Regulation 176 of the SEBI ICDR Regulations and intimated in earlier communications), for the Equity Shares to be allotted to the eligible qualified institutional buyers in the present tranche."

The small-cap company went on to add that allotment of 10,75,26,881 Equity Shares at the issue price to the eligible qualified institutional buyers in accordance with the terms of the issue, list of allottees shall be submitted through a separate communication.

FIIs shareholding in Vikas Lifecare

According to shareholding pattern of Vikas Lifecare for July to September 2022 quarter, Mauritius-based AG Dynamic Funds holds 5,20,70,938 shares or 3.90 per cent stake in the company. Likewise, other FPI, Citrus Global Arbitrage Fund holds 5,20,83,333 company shares or 3.90 per cent stake in the company. In Q1FY23 shareholding pattern AG Dynamic Funds was holding 2,70,00,000 shares or 2.19 per cent stake in the company that means the FII has raised stake in the penny stock from 2.19 per cent to 3.90 per cent.

Penny stock is available for trade on both NSE and BSE. Its current market cap is 704 crore and its current trade volume is 1.07 crore on NSE. 

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Asit Manohar

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