Recycling industry participant Vikas Lifecare announced on Friday that its board had approved funding up to Rs 40 crore through the preferential sale of convertible warrants.

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 a premium, for cash to the promoter of the company on a preferential basis at an issue price of Rs 4 per warrant aggregating up to Rs 400 million, it said.

Separately, the company said that it has paid Rs 12.5 crore to acquire a sizeable interest in MSR Apparels Private Limited, which produces apparel and clothing accessories.

“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. 

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