Recycling firm Vikas Lifecare to re-file share purchase agreement with RBI - Details

Days after sharing details about the share purchase agreement with Advik Capital Limited for the acquisition of control and 75 lakh equity shares of the issued and paid-up share capital of Industrial Investment Trust Limited, the recycling firm has informed exchanges that it will refile the application with the Reserve Bank of India (RBI). 

"Yesterday, the Target Company informed us that the said application has been returned by the RBI owing to “lack of regulatory comfort on account of existence of more than one NBFC in the resulting group.” We would like to continue with the acquisition of shares and control over the Target Company and the existing open offer process, thus, we are in process to re-file the application to RBI with the cooperation from the Target Company in this regard," the filing reads.

Earlier, the company said that it would incorporate a subsidiary company in the UAE to undertake commercial investments. Sharing the information, the company said that the proposal has been approved by its board.

"The board has approved the incorporation of Limited Liability Company (the LLC) in the Emirates of Dubai, United Arab Emirates, under the name Vikas Lifecare LLC or any other name approved by the Department of Economic and Tourism, Dubai, UAE (the DET)," the company said in an exchange filing.

However, the proposal remains subject to shareholders' approval.

On the rationale behind the move, Vikas Lifecare said, "The proposed subsidiary company shall carry out business in the field of investment in commercial enterprises and management or another activities as may be approved by the DET."

The fund-raising committee of the company had on Monday approved a proposal to raise Rs 50 crore through the QIP route. Earlier, the company said that it would acquire a 60 per cent stake in Dubai-based SKY 2.0 Club for USD 79 million (around Rs 650 crore).

The acquisition process shall be completed in the ongoing financial year, Vikas Lifecare said in an exchange filing.

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