3:1 Bonus Issue Ahead: Remedium Lifecare To Consider Rs 200 Cr Fundraising Via QIP

Remedium Lifecare's stock rose from its opening price of Rs 75 on the BSE on Tuesday to an intraday high of Rs 86.56, or 15.41%, in just one session. The spike was attributed to the company's announcement that the Board of Directors will meet on Monday, July 8, 2024, to discuss and approve the Rs 200 Cr QIP fundraising.

"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 Rs. 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.

According to the company, the Board will make decisions on the QIP's value, terms, and conditions, as well as its pricing, timing, and other relevant aspects. It will also decide on and approve the involvement of investment bankers, legal advisors, and other professionals who will be necessary as intermediaries 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 in the stock exchange filing.

Recently on June 26, 2024, Remedium Lifecare approved the increase in authorised share capital and consequent alteration in capital clause of the Memorandum of Association from Rs. 30,00,00,000/- divided into 30,00,00,000 equity shares of Re. 11- each to Rs. 42,00,00,000/- divided into 42,00,00,000 equity shares of Re. 1/- each. During the same Board meeting, the company had also approved the issue of bonus shares in the proportion of 3:1 i.e. 3 free equity shares of face value Re. 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) as well as a range of other basic materials.