3:1 Bonus Share: Multibagger Penny Stock under Rs 20; Board approved to increase the authorized share capital from Rs 42 crore to Rs 60 crore
The stock gave multibagger returns of 1,350 per cent in 3 years and a whopping 9,000 per cent in 5 years.
The Board of Directors of Remedium Lifecare Ltd on July 20, 2024, conditionally approved a proposal to increase the company's authorized share capital from Rs 42 crore to Rs 60 crore, subject to shareholder approval via remote e-voting and regulatory clearances. This would involve changing the company's Memorandum of Association to reflect the new authorized capital and grant the board the power to manage the company's capital structure, including issuing different classes of shares with various rights. The Board also approved the draft notice to be sent to shareholders for a postal ballot vote on the proposal.
Additionally, Remedium Lifecare Ltd is scheduling a board meeting on Thursday, August 8, 2024, to discuss the potential acquisition of a global specialty chemicals company for approximately Rs 1,000 crore. The acquisition would involve a stock swap and convertible debentures to achieve a full buyout, with the board seeking authorization to finalize the deal structure, valuation, and timeline due to ongoing discussions.
Earlier, the company's board proposed a bonus share issue in a ratio of 3:1, meaning for every 1 existing share you hold, you will receive 3 additional fully paid shares (1 rupee each) on the record date set was July 6, 2024, and ex-date was July 05, 2024.
Today, shares of Remedium Lifecare Ltd plunged 6.37 per cent to Rs 17.50 per share from its previous closing of Rs 18.69 with an intraday low of Rs 19 and an intraday low of Rs 17.15. The stock’s 52-week high is Rs 44.92 and its 52-week low is Rs 14.63.
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About the Company
Remedium Lifecare Ltd, founded in 1988, is a pharmaceutical company that is a middleman for other drug manufacturers. They buy and sell active pharmaceutical ingredients (APIs), which are the core chemicals used in medications, and intermediate chemicals needed to produce those APIs. Remedium deals with both innovative and generic drug companies, supplying them with a variety of products including cholesterol reducers, antidepressants, asthma medications, and allergy medicine ingredients. They source and sell these materials from around the world
Remedium Lifecare Ltd has a market cap of over Rs 770 crore with a 3-year stock price CAGR of 200 per cent. The company reported a total income of Rs 1,411.40 crore in Q4FY24 compared to a total income of Rs 75.58 crore in Q4FY23, an increase of 1,768 per cent. The company reported a net loss of Rs 53.72 crore in Q4FY24 compared to a net loss of Rs 4.78 crore in Q4FY23. In its annual results, the company reported total income increased by 698 per cent to Rs 4,062.80 crore and net profit increased by 504 per cent to Rs 32.72 crore in FY24 compared to FY23.
According to the shareholding pattern, the company's promoters own only a 1.11 per cent stake in the company. In FY24, FIIs took a fresh entry and bought a 0.04 per cent stake in the company and the maximum stake is owned by the public shareholders i.e. 98.85 per cent stake. The company's shares have an ROE of 123 per cent and an ROCE of 100 per cent. The stock gave multibagger returns of 1,350 per cent in 3 years and a whopping 9,000 per cent in 5 years. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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