1:1 bonus share & 1:10 stock split: Penny stock hit upper circuit; Company executes LoI with Telexcell Trade Pte Ltd & increase total shareholding for FPIs and FIIs to 49%
DSIJ Intelligence-1Categories: Penny Stocks, Trending
The stock is up by 44 per cent from its 52-week low of Rs 6.40 per share and has given multibagger returns of 355 per cent in 5 years.
On Wednesday, shares of Welcure Drugs & Pharmaceuticals Ltd hit a 5 per cent upper circuit to Rs 9.22 per share from its previous closing of Rs 8.79 per share.
Welcure Drugs & Pharmaceuticals Ltd. has signed a Letter of Intent (LOI) with Telexcell Trade PTE LTD, a Singapore-based company, for a strategic equity investment. The LOI outlines Telexcell's intention to acquire up to a 25 per cent stake in Welcure at an indicative price of Rs 20 per share. This is a significant premium to Welcure's current market price, which is below Rs 10. This all-cash transaction, once finalised, is expected to strengthen Welcure's position in the global pharmaceutical and chemical export sectors.
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The proposed investment is subject to several conditions precedent. These include the completion of a satisfactory due diligence review by Telexcell, the execution of definitive agreements between the two companies, and the receipt of all necessary corporate, shareholder, and regulatory approvals. Key regulatory bodies involved would include the Securities and Exchange Board of India (SEBI), the Reserve Bank of India (RBI), and the stock exchanges. Both parties aim to finalise the due diligence and agreements within 90 days of the LOI's execution date.
In a related move to facilitate such foreign investment, Welcure is seeking to increase the limit of total shareholding for Foreign Portfolio Investors (FPIs) and Foreign Institutional Investors (FIIs) to 49 per cent of its paid-up equity share capital. This measure, which requires a special resolution, would allow for greater foreign investment in the company. Furthermore, Welcure is also seeking approval to raise up to Rs 80 crore through a Qualified Institutions Placement (QIP), which would involve issuing new equity shares to qualified institutional buyers.
The Board of Directors of Welcure Drugs & Pharmaceuticals Limited also consider two key proposals: a stock split of equity shares in a 1:10 ratio (one equity share into ten) and the issue of bonus shares up to a 1:1 ratio (one bonus share for every one held). These actions aim to boost the company's liquidity, expand its shareholding base and make shares more affordable for investors.
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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 up by 44 per cent from its 52-week low of Rs 6.40 per share and has given multibagger returns of 355 per cent in 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.