9:5 Bonus Issue, 1:2 Stock Split: From Rs 50 to Rs 1,600, Smallcap Stock Rises 3,052% In 7 Months

Remedium Lifecare is a special stock! On Friday, the stock locked at 5% upper circuit as it traded ex-bonus for its bonus equity shares in the ratio of 9:5. The stock is only listed on BSE, and the year 2023 so far has been great for its investors. Because it's not just the hefty bonus issue, Remedium has skyrocketed by a mind-boggling 3,052% on the exchange that leads benchmark Sensex. This star-like performance has taken place in less than 7 months.

On BSE, Remedium Lifecare ended at Rs 1570.15 apiece, which is its 5% upper circuit. The stock had no sellers but several buyers and hence, it stayed frozen at the upper circuit level.

The company fixed July 29 as the record date for its bonus issue of 9:1. This means that the company will issue nine bonus equity shares having a face value of Rs 10 each against every existing five equity shares having a face value of Rs 5 per share.

That is why, the shares traded ex-bonus on July 28.

The record date is set to determine eligible shareholders for the bonus equity shares. But since July 29 is a weekend and markets will be closed on this day, hence, only investors who hold Remedium Lifecare equity shares in their Demat accounts by the end of trading hours of July 28, will be entitled to the bonus issue.

The company has also declared a stock split in the ratio of 1:2 --- which means -- one existing equity share having a face value of Rs 10 each -- will be sub-divided into two equity shares having a face value of Rs 5 each. The purpose of the split is to enhance the liquidity in the capital market, to widen the shareholder base and to make shares affordable/accessible to retail investors in the stock market. However, the company has not yet announced the stock split record date.

Remedium has made a long and stellar journey in a short-period of time on BSE. The stock was less than Rs 50 on January 2, 2023 (Rs 49.82 apiece), but zoomed by a breathtaking Rs 1,574.39 or 3,160.2% when it touched an all-time high of Rs 1,624.21 apiece on March 7, 2023. Since then, the stock has corrected but is somewhere near the Rs 1,600 level.

From January 2, 2023, to date, the stock has jumped by Rs 1,520.33 or 3,051.65%. This impressive performance is despite market volatility.

Remedium Lifecare was originally incorporated as Roxy Engineers as a private company in Punjab in February 1988. The company underwent a name change in May 1995 as Roxy Exports. But later in February 2020, the company's registered office was shifted from Punjab to Maharashtra with effect from February 18, 2020. Later, the name further changed and Remedium Lifecare was birth with a fresh certificate of incorporation in Mumbai in November 2020.

Till the quarter ended June 30, 2018, the company was engaged in the business of manufacturing and distribution of bicycles and their parts. From FY19 till FY20, the company was into manufacturing and trading of atmospheric water generating machines known as "Air-O-Water".

But Remedium Lifecare is now engaged in the trading of pharmaceutical products and various raw materials used in the pharmaceutical industry including but not limited to Aminoisophthalic Acid, Tellurium(IV) Oxide, Grignard Reagent, Iodine, Selenium Metal Powder, Trimethyl Solfoxonum Iode(TMSI).

With the Remedium Lifecare entered the Bombay Stock Exchange (BSE). The stock trades under the small cap basket.

The company's FY23 profit stood at Rs 5.43 million, while revenue came in at Rs 509.84 million.