FMCG Stock Under Rs 5 Marks Global Presence By Acquiring Companies In UAE; Do You Own?

Evexia Lifecare, one of the players in the FMCG market, unveiled its plans to expand globally after capturing a 51% share of Vittal's MediCare Private Limited - a diagnostics company operating in the UAE. The deal is estimated at Rs 35 crores and will introduce Evexia Lifecare as a parent company to Vittal's MediCare augmenting the healthcare business of Evexia Lifecare with a stronghold in the healthcare business branches.

The company advised that this step is consistent with its strategic objective of bolstering its diagnostics business to augment the core pharmaceutical, chemicals and life care operation of the company. Through this acquisition, Evexia seeks to enhance its capabilities and diversify its business in the healthcare industry. Vittal's MediCare has been one of the leading brands for the Diagnostics Business Units in the UAE and has been able to realize this growth trend over the last three consecutive years. The revenue was Rs 25.7 Cr.

At a further level, Evexia Lifecare has a wholly owned subsidiary by the name Evexia Lifecare Africa Limited which has also in the same regard entered into agreements to invest in ten medical diagnostics-based Limited Liability Companies LLCs located in the UAE.

For the purpose of 51% shareholding in Special Purpose Vehicle (SPV), Evexia Lifecare Africa will spend Rs 190 crore (AED 8.3 crore). This special purpose vehicle will combine the business of all the ten LLC's which will give Evexia control of a large healthcare player in the UAE. The other 49% will be held by the current LLC partners.

The performance of Evexia Lifecare's stock has significantly improved lately, an indicator of the market's bullish outlook regarding the business expansion plans of the firm. In the last session, Evexia Lifecare's shares rose 3.75 per cent to Rs 4.01 from its previous closing price of Rs 3.95 on the Bombay Stock Exchange. The stock has turned out to be a multibagger, never going below a base price of Rs 1.55 within a year even when the other shares in the stock market plunged. Evexia Lifecare currently boasts the appeal of the rich with a market cap of Rs 446.97 crore.

In addition, Evexia also recently stated it intends to issue up to 24 crore convertible warrants at the rate of Rs 3.60 per warrant. Each warrant is antifield to subscribe for a single fully paid-up equity share at a par value of Re 1 and at a premium of Rs 2.60, which amounts to $ 86.4 million. This allotment conforms to the existing legal requirements and procedures which include, but are not limited to, the Companies Act, SEBI laws, and applicable laws.

Kavit Industries Limited now operating as Evexia Lifecare engages in trading in chemicals, farm produce as well as assorted household products. The firm has also been working on further distribution of its activities and recent actions were aimed at creating a branch to develop systematic surgeries in Africa affirming its intention to broaden its healthcare services to other countries.