Remedium Lifecare saw its stock soar from an opening price of ₹75 on the BSE to an intraday high of ₹86.56 on Tuesday, marking a significant 15.41% increase in a single session.
The surge was driven by the company’s announcement that its Board of Directors is scheduled to convene on Monday, July 8, 2024, to discuss and approve a proposal to raise up to ₹200 crore through a Qualified Institutional Placement (QIP).
In a regulatory filing, Remedium Lifecare stated, “The Board will evaluate and approve the proposal to raise funds up to ₹200,00,00,000 by way of issuance of equity shares, convertible securities, or other eligible instruments to Qualified Institutional Buyers (QIBs). These funds will be utilized for acquiring Good Manufacturing Practices (GMP) assets in the Active Pharmaceutical Ingredients (API) and Intermediates space, along with technology, Intellectual Property (IP), including US Drug Master File (USDMF), and other relevant assets.”
The company also indicated that the Board will determine the specifics of the QIP, including its value, terms, pricing, timing, and engage necessary professionals such as investment bankers and legal advisors to facilitate the process.
Additionally, Remedium Lifecare disclosed plans to seek shareholder approval through an extraordinary general meeting or postal ballot process for the proposed fundraising activity. The company has closed its trading window for dealing in shares from July 1, 2024, in accordance with SEBI regulations.
In a separate decision on June 26, 2024, the company’s Board approved an increase in its authorized share capital and the issuance of bonus shares in a ratio of 3:1, subject to the announcement of the record date.
Remedium Lifecare specializes in trading API intermediates (KSMs & CRMs) and a variety of other essential materials.
