3:1 bonus share: Multibagger penny stock under Rs 20 in focus as company to acquire an unlisted company in the specialty chemicals sector worth Rs 1,000 crore
The stock gave multibagger returns of 1,390 per cent in 3 years and a whopping 9,250 per cent in 5 years.
Today, shares of Remedium Lifecare Ltd gained 4.25 per cent to Rs 17.15 from its previous closing of Rs 16.45. The stock’s 52-week high is Rs 44.92 and its 52-week low is Rs 14.63.
Remedium Lifecare Ltd informed that the meeting of the Board of Directors of the company is scheduled to be held on Thursday, August 08, 2024, inter alia to:
- Consider and approve the Un-Audited Standalone Financial Results for the quarter ended June 30, 2024.
- Consider the acquisition of an unlisted company in the specialty chemicals sector with a global footprint. The acquisition will be executed via a stock swap and the issuance of optionally convertible debentures, resulting in a 100 per cent buyout. The acquisition value is expected to be around Rs 1,000 crore, subject to agreement on valuation parameters and the completion of due diligence on the target company’s financial and legal formalities.
- Authorise the board to approve the transaction structure, valuation, and timelines, given the preliminary nature of the discussions.
- Ratify the transaction in a subsequent Extraordinary General Meeting (EGM) or through a Postal Ballot.
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.
Furthermore, the Board approved raising funds by way of issuance of such number of equity shares having a face value of Rs 1 each of the company and/or other eligible securities or any combination thereof for an aggregate amount not exceeding Rs 200 crore by way of qualified institutional placement (QIP).
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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 678 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 1,390 per cent in 3 years and a whopping 9,250 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.