9:5 Bonus, 1:2 Split, 21,185% Gains: Pharma Stock To Split Again But In 5-To-1 Ratio, Record Date Nears

Remedium Lifecare in a little over two years has made significant changes in its share price, gaining high demand from investors. After a stock split of 1:2 and bonus shares of whopping 9:5, Remedium is back with another stock split where its face value of Rs 5 will be subdivided into Rs 1 per share. Remedium is a money-making stock, giving not double, triple, or even quadruple return, but instead rising by eye-bulging 21,185% in 5 years. A mere investment of Rs 10,000, will turn into the corpus of a whopping Rs 21.28 lakh in 5 years.

Ahead of the record date for its upcoming stock split, Remedium's share price surged by nearly 10% to hit an intraday high of Rs 590 apiece on BSE during trading hours of Friday. The smallcap's market value is at Rs 1,189.44 crore.

Remedium Lifecare Stock Split:

In its regulatory filing, Remedium said that it fixed February 23, 2024, as the record date for shares sub-division having face value of Rs 5 each to Rs 1 each. On the record date, the company will determine eligible shareholders for the latest stock split.

Earlier, last year, Remedium shares turned ex-split on September 1, 2023, for a shares sub-division to the tune of 1:2. The company's stock split in the ratio of 1:2 meant that --- one existing equity share having a face value of Rs 10 each -- was 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.

Remedium Lifecare Bonus Share:

Before the stock splits, Remedium also rewarded investors with bonus shares in the ratio of 9:5. Accordingly, the Company issued he company 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.

Remedium has not declared any dividends.

Remedium Lifecare Earnings:

In nine month period of FY24, the company's net profit of Rs 86.45 crore versus Rs 10.21 crore in the corresponding period of the previous year. Q3 net profit was at Rs 68.77 crore, rising by multi-fold from Rs 1.52 crore in Q3FY23 and Rs 6.52 crore in Q2FY24.

Revenue in 9MFY24 stood at Rs 2,633.21 crore, surging by multi-fold from Rs 434.25 crore in 9MFY23. Q3FY24 revenue also skyrocketed to Rs 1,834.17 crore compared to Rs 176.47 crore in Q3FY23 and Rs 468.56 crore in Q2FY24.

About Remedium Lifecare:

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.