Remedium Lifecare stock rises 8% as board mulls raising ₹200 crore via QIP

Remedium Lifecare's stock surged from its opening price of ₹75 on the BSE on Tuesday to an intraday high of ₹86.56, marking a 15.41 per cent increase in just one session. 

This spike was driven by the company's announcement that its Board of Directors will meet on Monday, July 8, 2024, to discuss and approve a ₹200 crore QIP fundraising plan.

"We hereby inform you that the meeting of the Board of Directors of the Company is scheduled to be held on Monday, July 08, 2024, inter alia to: evaluate and approve the proposal to raise funds up to ₹200,00,00,000/- (Rupees Two Hundred Crores Only) by way of issuance of equity shares, convertible securities, or other eligible instruments to Qualified Institutional Buyers (QIBs) to finance the acquisition of Good Manufacturing Practices (GMP) assets in the Active Pharmaceutical Ingredients (API) and Intermediates space, as well as the acquisition of technology, Intellectual Property (IP), including US Drug Master File (USDMF), Certificate of Suitability to the Monographs of the European Pharmacopoeia (CEP), tech packages, and other relevant assets," said Remedium Lifecare in a regulatory filing," the company said in an exchange filing.

According to the company, the Board will determine the QIP's value, terms, and conditions, including its pricing, timing, and other relevant aspects. Additionally, the Board will approve the engagement of investment bankers, legal advisors, and other professionals necessary for the QIP process.

"The Board would also consider convening an extra-ordinary general meeting/ postal ballot process to seek approval of the shareholders in respect of the aforesaid proposal of fund raising, as required. Further with reference to our letter dated June 25, 2024 with regards to Closure of Trading window for dealing in shares of the Company in accordance with the SEBI (Prohibition of Insider Trading), Regulations, 2015, the Trading Window for Company's securities is closed from July 01,2024 and shall remain closed until48 hours after the declaration of unaudited financial results for the quarter ended 30th June, 2024," the company further added.

On June 26, 2024, Remedium Lifecare approved an increase in its authorized share capital and the corresponding alteration in the capital clause of its Memorandum of Association. The capital was raised from ₹30,00,00,000, divided into 30,00,00,000 equity shares of ₹1 each, to ₹42,00,00,000, divided into 42,00,00,000 equity shares of ₹1 each. During the same Board meeting, the company also approved the issuance of bonus shares in the proportion of 3:1, granting 3 free equity shares of ₹1 each for every 1 equity share already held as of the record date, which will be announced in due course.

Remedium is a trader of API intermediates (KSMs & CRMs) and a range of other basic materials.