Remedium Lifecare Board To Consider Acquisition of AirOWater Global Trading LLC

On Thursday, the shares of Remedium Lifecare ended on a 5% upper circuit limit at Rs 10.40 apiece. The market cap of the small-cap commercial services company reached Rs 419.33 Cr. The buying trend in the stock was seen after the company announced that the Board of Directors will soon consider the acquisition of AirOWater Global Trading LLC, UAE and the issuing of Foreign Currency Convertible Bonds (FCCBs).

"We wish to inform you that due to unavoidable circumstances, the Board meeting has been postponed by a day and is now scheduled on Wednesday, September 04, 2024 inter alia 1. To Consider Acquisition of AirOWater Global Trading LLC, UAE: The Board will review the proposal to acquire a substantial stake in AirOWater Global Trading LLC, a pioneering entity in the production of the purest form of drinking water via Atmospheric Water Generators (AWGs). This technology, recognised as one of the most sustainable solutions to the pressing issue of global water scarcity, has successfully catered to diverse sectors including Government Institutions, Corporates, Hospitality chains, Supermarkets, Hospital chains, Educational institutions, and Community Centres. AirOWater is now poised to enter niche segments such as the production of Water for Injections (WFIs) and water for dialysers used in kidney dialysis, leveraging the superior quality of its AWG-produced water. This water not only meets the stringent quality controls required for such critical applications but also mitigates contamination risks associated with traditional surface and groundwater sources. 2. To Consider issuing of Foreign Currency Convertible Bonds (FCCBs)," said Remedium Lifecare in a stock exchange filing on Wednesday.

On the financial front, from Rs 5.25 crore in the quarter that ended in June 2023 to Rs 1.64 crore in the quarter that ended in June 2024, Remedium Lifecare's net profit dropped by 68.76%. Sales in Q1FY25 dropped 76.49% to Rs 77.70 crore from Rs 330.46 crore in Q1FY24.

The objective of the strategic agreement that Remedium Lifecare and Angel Partners, Ltd., UK inked last month, which went into effect on July 29, 2024, was to acquire the technology needed to create lithium carbonate in India. It signed an annual supply contract with Alfa Chemicals and Solvents Ltd., Turkey, for technical-grade lithium carbonate, effective January 1, 2025. According to a regulatory filing, the supplies for CY 2025 are estimated to be worth USD 20-25 million.

Earlier in 2024, the company announced bonus shares at a 3:1 ratio, with a record date of July 6, 2024. The share price of Remedium Lifecare has been climbing since July of this year after the announcement by the company's board to raise capital to Rs 200 crore through the QIP.