Penny stock under Rs 60 jumps over 10% after the board approves acquisition and major fundraising!
DSIJ Intelligence-1 / 11 Dec 2025/ Categories: Penny Stocks, Trending
The stock has a 52-week high of Rs 74.88 per share and a 52-week low of Rs 42 per share.
Eiko LifeSciences Limited's Board of Directors, meeting today, approved the strategic acquisition of a controlling stake in SSM Formulations Private Limited is a pharmaceutical manufacturing company. Eiko LifeSciences will acquire a 51 per cent equity shareholding in SSM Formulations for a total cash consideration of Rs 18 crore. This move is intended as a strategic forward-integration into pharmaceutical formulations, allowing Eiko LifeSciences to diversify its product portfolio, consolidate its market position, and capture higher value across the pharmaceutical supply chain. The target company, with a turnover of over Rs 27 crore in FY 2024-25, will become a subsidiary of Eiko LifeSciences.
The Board also sanctioned a substantial fund-raising initiative through a preferential issue of warrants and equity shares, aggregating up to a maximum of Rs 21.86 crore. This includes the issuance of up to 33 lakh Warrants, each convertible into one equity share, at an issue price of Rs 55 per warrant, aiming to raise up to Rs 18.15 crore. Additionally, the Board approved the issuance of up to 6.75 lakh Equity Shares at the same price of Rs 55 per share, raising up to Rs 3.71 crore. The Warrants and Equity Shares will be allotted to the Promoter, Promoter Group, and Non-Promoter/Public categories.
Both the preferential issue of Warrants and Equity Shares are priced at Rs 55 (including a premium of Rs 45 over the face value of Rs 10), in compliance with SEBI ICDR Regulations. These fundraising proposals, along with the details of the acquisition, are subject to the necessary approvals from regulatory/statutory authorities and the Company's Members at the ensuing Extraordinary General Meeting. These resolutions mark a significant push by Eiko LifeSciences towards strategic expansion and capital mobilisation for future growth.
About the Company
Eiko LifeSciences Ltd., established in 2021, is a manufacturer and seller of a diverse range of Specialty Chemicals and Fine Chemicals. The company's product portfolio is highly varied, encompassing key segments such as Pharmaceutical Intermediates and Active Pharmaceutical Ingredients (API), including anti-convulsants and cardiovascular drugs. Furthermore, Eiko LifeSciences produces various other chemicals, including Agrochemical Intermediates, ingredients for Flavours & Fragrances like Coumarin and Methyl Anthranilate, and several CoSMEtic Emollients like Isopropyl Myristate, reflecting a broad and specialised operational focus across multiple industrial sectors.
On Thursday, shares of the company jumped over 10 per cent to Rs 59 per share from its previous closing of Rs 53.18 per share. The stock has a 52-week high of Rs 74.88 per share and a 52-week low of Rs 42 per share.
Disclaimer: The article is for informational purposes only and not investment advice.