Board likely to raise Rs 200,00,00,000 via QIP after 3:1 bonus share: Multibagger penny stock Rs 86.56 hit 20 per cent upper circuit and saw volume breakout

The stock gave multibagger returns of 2,120 per cent in 3 years and a whopping 11,000 per cent in 5 years.

Today, shares of Remedium Lifecare Ltd hit 20 per cent upper circuit to an intraday high of Rs 86.56 from its previous closing of Rs 72.14. The stock’s 52-week high is Rs 179.66 and its 52-week low is Rs 58.50. The shares of the company saw a volume breakout of more than 5 times on BSE.

Remedium Lifecare Ltd informed that the meeting of the Board of Directors of the company is scheduled to be held on Monday, July 08, 2024, inter alia to:

1) Consider and approve the proposal for fundraising through Qualified Institutional Placement (QIP):

• To evaluate and approve the proposal to raise funds to Rs 200,00,00,000 by way of issuance of equity shares, convertible securities, or other eligible instruments to Qualified Institutional Buyers (QIBs) to finance the acquisition of Good Manufacturing Practices (GMP) assets in the Active Pharmaceutical Ingredients (API) and Intermediates space, as well as the acquisition of technology, Intellectual Property (IP), including US Drug Master File (USDMF), Certificate of Suitability to the Monographs of the European Pharmacopoeia (CEP), tech packages, and other relevant assets.
• To determine the quantum, terms, and conditions of the QIP, including but not limited to the pricing, tinting, and other relevant aspects of the issuance.
• To discuss and authorise the engagement of necessary intermediaries, including investment bankers, legal advisors, and other professionals for the QIP process.

2) Consider allotment of bonus shares to the equity shareholders of the company as on record date. 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 for July 6, 2024 and ex-date is July 05, 2024.

3) Consider any other matter with the approval of the board. 

Also Read: 1:1 Bonus Share: LIC-backed multibagger penny stock at Rs 4.07; Board allots 15,36,24,538 fully paid-up rights equity shares

Additionally, the company has been awarded a significant contract by Aster Biotech Limited, a pharmaceutical distribution company based in the United Kingdom. This multi-year deal signifies a major opportunity for Remedium to supply various pharmaceutical products to the UK market. The contract spans three years, from July 2024 to June 2027. Notably, the first year alone holds substantial value, with supplies of Active Pharmaceutical Ingredients (APIs), Intermediates, and Specialty Chemicals estimated at Rs 175 crore. This international contract positions Remedium well for continued growth and strengthens its presence in the global pharmaceutical supply chain.

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 800 crore with a 3-year stock price CAGR of 190 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 2,120 per cent in 3 years and a whopping 11,000 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.