Penny Stock Below Rs 2 Hits Back-to-Back Upper Circuits After Announcing 61:50 Rights Issue & Rs 182.7 Crore Agreement with US-Based Pharma Company
The stock is up by 50 per cent from its 52-week low and has given multibagger returns of over 1,200 per cent in 5 years.
Remedium Lifecare Limited (BSE: 539561) has announced the launch of its much-anticipated Rights Issue, following approval from the Bombay Stock Exchange (BSE). This strategic initiative aims to propel the company towards becoming a vertically integrated, research-driven pharmaceutical leader. The Rights Issue will open on April 30, 2025, and close on May 14, 2025. This capital raise follows Remedium’s recent Rs 182.7 crore agreement with a prominent UK-based pharmaceutical company, highlighting its focus on international expansion. The funds generated will be allocated to various crucial areas, including strengthening working capital, investing in R&D capabilities, scaling up the production of high-value pharmaceutical intermediates, attracting top talent, driving digital transformation, and accelerating global market penetration.
The key highlights of the Rights Issue include a closing price of Rs 1.79 as of April 25, 2025, and a rights issue price of Rs 1 per share. The ratio for the issue is 61 Rights Equity Shares for every 50 Equity Shares held on the Record Date, which was Tuesday, April 15, 2025. The Rights Issue opens on Wednesday, April 30, 2025, and closes on Wednesday, May 14, 2025. The period for the renunciation of Rights Entitlement is from April 30, 2025 to May 9, 2025. The total size of the Rights Issue is Rs 49.19 crore.
A significant portion of these proceeds will be directed towards establishing advanced research laboratories specialising in Central Nervous System (CNS) disorders, metabolic conditions, and oncology—three high-demand therapeutic areas. The capital raised will also support prepayment, enhancing financial resilience. This initiative not only bolsters Remedium Lifecare’s operational and research capabilities but also supports India’s growing stature as a reliable pharmaceutical manufacturing and supply chain hub. Through ongoing investments in high-quality infrastructure and cutting-edge R&D, the company aligns with the national ‘Make in India’ initiative, while contributing to job creation and sustainable sectoral growth.
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About the Company
Founded in 1988, Remedium Lifecare Ltd. is a BSE-listed pharmaceutical company engaged in the trading and distribution of raw materials as a supply chain management for the pharmaceutical industry with an emphasis on quality, compliance and global reach. The company continues to expand its presence while playing a pivotal role in India’s pharmaceutical ecosystem.
Remedium Lifecare Ltd has a market cap of Rs 162.91 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. The stock is up by 50 per cent from its 52-week low and has given multibagger returns of over 1,200 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.