Penny Stock Below Rs 5: Board to Raise Capital, Acquire Controlling Stakes in Two Firms via Share Swap and Expand Business Scope
The stock is up by 57 per cent from its 52-week low of Rs 2.11 per share.
In a meeting held by the Board of Directors of EVOQ Remedies Ltd made several important decisions were made. These decisions were made at the company's registered office in Ahmedabad, Gujarat. The key approvals included plans to increase the company's authorised share capital and to issue new shares to acquire significant stakes in two other companies, Poshan Nutriwell Private Limited (PNPL) and Spazio Formulations Limited (SFL).
Specifically, the board approved increasing the total amount of money the company is allowed to raise through shares to Rs 42 crore. Furthermore, they agreed to issue up to 63,36,000 new equity shares to acquire 71.95 per cent of PNPL by swapping EVOQ shares for PNPL shares. A similar arrangement was approved to acquire 50.36 per cent of SFL by issuing up to 1,00,00,000 new equity shares in exchange for SFL shares. These types of share issuances, where shares are exchanged for assets rather than cash, are known as preferential issues for consideration other than cash.
Finally, the Board of Directors also decided to broaden the scope of EVOQ Remedies' business activities. They approved changes to the company's Memorandum of Association, the document that outlines its permitted activities, to include dealing in a wide range of agricultural produce and becoming involved in the manufacturing and processing of agro-based products like oils and proteins. These changes are subject to the approval of the company's shareholders. The company has also provided detailed disclosures about these decisions as required by regulations set by the Securities and Exchange Board of India (SEBI).
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Incorporated in 2010, EVOQ Remedies Ltd is involved in the marketing, trading, and distribution of a diverse array of pharmaceutical formulation products, including anti-biotic, anti-malarial, anti-allergic, analgesic, dermatology, neurological, gastrointestinal, and gynaecology drugs as well as steroids, calcium, multivitamins, anti-oxidants, and injections. The company also trades in active pharmaceutical ingredients, nutraceuticals, and Ayurvedic and herbal products, marketing approximately 120 of these products under its brand name through outsourced manufacturing.
According to Quarterly Results, the net sales increased by 7,740 per cent to Rs 11.76 crore and net profit increased by 338 per cent to Rs 1.71 crore in H2FY25 compared to H2FY24. In FY25, the company reported net sales of Rs 11.76 crore and net profit of Rs 0.09 crore.
The company has a market cap of Rs 8.24 crore. The stock has a PE of 90x whereas the industry PE is 29x and it is trading at 0.18 times its book value. According to the shareholding pattern, the promoters own 11.21 per cent stake and the rest 88.79 per cent is owned by the public as of March 2025. The stock is up by 57 per cent from its 52-week low of Rs 2.11 per share.
Disclaimer: The article is for informational purposes only and not investment advice.