61:50 Rights Issue: Multibagger Penny Stock Under Rs 5 Locked In Upper Circuit After Announcing Rs 49.19 Crore Rights Issue for Business Expansion

From Re 0.20 to Rs 2.14 per share, the stock gave multibagger returns of 855 per cent in 5 years.

Remedium Lifecare Limited, a rapidly expanding manufacturer of pharmaceutical intermediates and specialty chemicals listed on the Bombay Stock Exchange (BSE: 539561), has announced its successful acquisition of approval from the BSE for a proposed rights issue. This strategic move will enable the company to raise Rs 49.19 crore (Rs 4,919.04 lakh), assuming full subscription, from its existing shareholders. The capital raised through this rights issue is earmarked to bolster the company's financial standing and fuel its ambitious growth plans, which encompass the expansion of its manufacturing capabilities, the advancement of new product development initiatives, and the deepening of its penetration into global markets.

The key details of the approved rights issue include a record date set for Tuesday, April 15, 2025. The company will be offering 49,19,04,000 fully paid-up equity shares with a face value of Rs 1 each at a price of Rs 1 per share. The rights ratio has been fixed at 61 rights equity shares for every 50 fully paid-up equity shares held by eligible shareholders as of the record date. The primary objectives of this rights issue are to meet the company's working capital requirements and to fund the acquisition of equipment for research and development, as well as overall expansion efforts. This capital infusion comes at a propitious time for Remedium Lifecare, which recently secured a significant multi-year export contract valued at Rs 182.7 crore with a prominent UK-based pharmaceutical distributor in February 2025, positioning the company to leverage increasing global demand within crucial therapeutic areas such as anti-infectives, cardiovascular, CNS, and oncology-supportive drugs.

Adarsh Munjal, Whole Time Director, Remedium Lifecare Ltd, said, “This approval from the BSE marks a significant milestone in our journey. We remain committed to enhancing shareholder value while scaling up our operations responsibly and sustainably.”  

About the Company

Founded in 1988 and listed on the BSE, Remedium Lifecare Ltd. operates as a crucial pharmaceutical intermediary, specializing in the procurement and distribution of Active Pharmaceutical Ingredients (APIs), API intermediates, and specialty chemicals to both innovative and generic drug manufacturers. With a strong focus on quality, compliance, and a global reach facilitated by their international sourcing network, Remedium plays a pivotal role in India's pharmaceutical ecosystem by supplying essential raw materials for a range of treatments, including those for cholesterol, depression, asthma, and allergies, thereby connecting drug production with vital components.

Remedium Lifecare Ltd has a market cap of Rs 86.3 crore. According to Quarterly Results, the company reported net sales of Rs 38.15 crore and a net profit of Rs 0.76 crore in Q3FY25 while in its half-yearly results, the company reported net sales of Rs 140.93 crore and a net profit of Rs 4.18 crore in 9MFY25. 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 and the maximum stake is owned by the public shareholders i.e. 98.89 per cent stake. The company's shares have an ROE of 123 per cent and an ROCE of 100 per cent. From Re 0.20 to Rs 2.14 per share, the stock gave multibagger returns of 855 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.