Pharma Penny Stock Under Rs 50: Board to Raise Rs 188.34 Crores Through Preferential Basis to Drive Business Growth
The stock gave multibagger returns of 722 per cent from its 52-week low of Rs 5.82 per share.
On Monday, shares of Sudarshan Pharma Industries Ltd plunged 2 per cent to Rs 47.83 per share from its previous closing of Rs 48.80 per share. The stock’s 52-week high is Rs 53.50 per share while its 52-week low is Rs 5.82 per share.
Sudarshan Pharma Industries Limited (SPIL) proposes to raise up to Rs 188.34 crore through the issuance of 4,30,00,000 Fully Convertible Warrants on a preferential basis to both "Promoter / Promoter Group" and "Non-Promoter, Public Category" investors (listed in Annexure-I). These warrants, priced at Rs 43.80 per warrant, are convertible into an equal number of equity shares within 18 months of allotment. This fund-raising initiative aims to drive business growth, enhance operational capabilities, and strengthen the company's long-term financial stability. The issuance is subject to shareholder approval and applicable regulatory clearances.
Earlier, the company announced that it acquired Sudarshan Pharma Industries Private Limited, a Singapore-based industrial chemical wholesaler, for SGD 10,000 to expand in Singapore. Sudarshan Pharma is independently owned. The acquisition requires no significant regulatory approvals and will be cash-funded. Additionally, the company has acquired a 51 per cent stake in Ishwari Healthcare Private Limited, a manufacturer and distributor of medical and surgical instruments, making it a subsidiary.
DSIJ’s ‘Micro Marvel' service recommends micro-cap stocks with the potential to grow multifold in long run. If this interests you, do download the service details here.
About the Company
Sudarshan Pharma Industries Limited (SPIL), established in 2008 and headquartered in Mumbai, is a prominent contract manufacturer of generic formulations. Operating across diverse segments, including speciality chemicals, intermediates, APIs, pharmaceutical and formulation generics, and bulk supply, SPIL caters to a wide range of institutions and healthcare organizations. Beyond its contract manufacturing services, SPIL has ventured into branded products through its Vimac Healthcare division. A significant portion of its product portfolio, consisting of 56 out of 96 items, is registered under the "R" trademark. Furthermore, SPIL collaborates with renowned Indian companies and institutional clients, offering contract manufacturing services for pharmaceutical formulations and medicines.
On November 22, 2023, the shares of the company ex-traded sub-division /stock split of the company’s 1 (one) equity share having a face value of R 10 each fully paid-up, into 10 equity shares of the company having a face value of Re 1 each fully paid-up.
The company has a market cap of Rs 1,151 crore and has delivered good profit growth of 37 per cent CAGR over the last 5 years. The stock gave multibagger returns of 722 per cent from its 52-week low of Rs 5.82 per share. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.