Pharma penny stock under Rs 50; Board intends to allocate the gross proceeds from the issue towards several key areas; Details inside!

The stock gave multibagger returns of 606 per cent from its 52-week low of Rs 5.82 per share.

Sudarshan Pharma Industries Limited (SPIL) intends to allocate the gross proceeds from the issue towards several key areas. A small portion, Rs 0.24 crore, is designated for covering issue expenses, with utilization planned by June 30, 2025. A significant portion, Rs 81 crore each, is allocated for working capital requirements and business expansion, with both targeted for utilization by September 30, 2026. Additionally, Rs 4.50 crore is earmarked for loan repayment also by September 30, 2026. Finally, Rs 21.60 crore is intended for general corporate purposes, with utilization expected by September 30, 2026. The total estimated utilization of the gross proceeds is Rs 188.34 crore, assuming full conversion of warrants into equity shares.

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.

On Saturday, shares of Sudarshan Pharma Industries Ltd plunged 2 per cent to Rs 41.12 per share from its previous closing of Rs 41.95 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.

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.

The company has a market cap of over Rs 1,000 crore and has delivered good profit growth of 37 per cent CAGR over the last 5 years. The stock gave multibagger returns of 606 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.