Penny stock: The shares of Welcure Drugs & Pharmaceuticals hit 5% upper circuit on Wednesday’s trading session following the company’s announcement of a Letter of Intent (LOI) with Telexcell Trade PTE LTD, Singapore, regarding their intention to acquire a significant equity stake in the company.
In an exchange filing, the company revealed that Telexcell Trade PTE LTD, Singapore plans to acquire up to a 25% equity stake in Welcure Drugs & Pharmaceuticals Ltd. The investment will be made entirely in cash, pending necessary due diligence, approvals, and compliance with relevant laws.
The firm stated that the suggested price is ₹20 per share, which reflects a premium over the existing market price (which is under ₹10 as of the date of the Letter of Intent).
The company indicated that this investment aims to enhance Welcure’s global presence in the pharmaceutical and chemical export sectors, especially given the increasing opportunities in emerging markets.
Additionally, the company indicated that the planned transaction is contingent upon the completion of satisfactory due diligence; the execution of binding agreements between the involved parties; and obtaining necessary corporate, shareholder, and regulatory clearances, including approvals from SEBI, RBI, and stock exchanges.
The parties aim to finalize the due diligence and the execution of binding agreements within 90 days from the date of this Letter of Intent (LOI).
This announcement is made to promote transparency and keep stakeholders updated. The company will provide further updates to the exchanges and stakeholders regarding any developments as they arise.
Welcure Drugs & Pharmaceuticals share price today opened at ₹8.61 apiece on the BSE, the stock touched an intraday high of ₹9.22 and an intraday low of ₹8.40 per share.
Company Details
Welcure Drugs & Pharmaceuticals has been constructed step-by-step on a strong foundation of care. For over eighty years, our commitment to positively impacting patients has shaped every facet of Welcure Drugs And Pharmaceuticals Ltd’s operations.
Additionally, the company engages in manufacturing, designing, repairing, installing, trading, importing, exporting, acting as an agent for sales, and distributing water processing equipment, purifiers, and various types of water softeners. Furthermore, the company is involved in real estate, focused on developing outstanding living and working environments for the new generation of global Indian professionals.
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