Penny Stock Under Rs 10: Pharmaceutical and Healthcare Business Responds to Telexcell’s Rs 20-Per-Share Investment Proposal

The Board of Directors of Welcure Drugs & Pharmaceuticals Ltd has announced its response to a significant investment proposal from Singapore-based Telexcell Trade PTE LTD, signaling strong investor confidence in the pharmaceutical firm while safeguarding management independence and shareholder interests.

In a board meeting held on September 27, 2025, the directors deliberated on a Letter of Intent (LOI) from Telexcell expressing interest in acquiring up to a 25 per cent equity stake in Welcure. Telexcell proposed an indicative price of Rs 20 per share, nearly double Welcure’s prevailing market price of approximately Rs 10 per share. The board termed this premium valuation as a validation of Welcure’s intrinsic value and a vote of confidence in the company’s pharmaceutical legacy and export capabilities.

Management Independence Non-Negotiable

While welcoming Telexcell as a potential premium investor, the Welcure board unanimously rejected any attempts by the Singaporean firm to gain influence over the company's management or decision-making. The board emphasised that Welcure will remain independently managed by its current Board of Directors and professional team. Directors clarified that Telexcell will not be granted any special rights to interfere with operations or governance. “The independence of Welcure’s decision-making is non-negotiable,” the company stated, highlighting its commitment to strategic continuity and protecting long-term shareholder interests.

No Dilution for Existing Shareholders

To protect shareholder value, the board specified that Telexcell may acquire its stake only through secondary market transactions, ensuring no liability for Welcure and no dilution of existing shares. Approved routes for acquisition include:

• Open market purchases

• On-exchange block deals

• Off-market Share Purchase Agreements (SPAs) with current shareholders

• Acquisition of holding entities that own Welcure shares

The board also clarified that Welcure is not considering any immediate fundraising activities, such as a Preferential Allotment or Qualified Institutional Placement (QIP).

Future Priority for Telexcell

Although no immediate fundraising is planned, Welcure has accorded Telexcell strategic priority for the future. Should the company require fresh capital, Telexcell will be given first preference as a partner, subject to regulatory approvals.

About the Company

Welcure Drugs & Pharmaceuticals Ltd, established in 1992, historically specialised in manufacturing and marketing a diverse range of pharmaceutical formulations, including tablets, capsules and dry syrups. Their extensive product portfolio covered various therapeutic categories like antibiotics, vitamins, analgesics and anti-diabetics, serving both Indian and international markets. With a recent strategic shift and improved financial performance, Welcure Drugs & Pharmaceuticals Ltd is now focused on achieving long-term sustainable growth.

The company reported a substantial financial upturn for the quarter ending June 30, 2025. Net profit soared to Rs 23.29 crore, an impressive 830 per cent increase quarter-on-quarter from Rs 2.5 crore in Q4FY25 and a significant recovery from a Rs 0.34 crore loss in Q1FY25. Revenue from operations dramatically rose to Rs 299.91 crore, nearly 1,300 per cent higher than Q4FY25's Rs 21.21 crore. The company has a market cap of over Rs 100 crore. The stock is trading near its 52-week low of Rs 5.80 per share and has given multibagger returns of 195 per cent in 5 years.

Disclaimer: The article is for informational purposes only and not investment advice.