Amidst the boom in the stock market, news based stocks are constantly in discussion. Some penny stocks were also in the news in Wednesday’s market, in which upper circuit was applied. One of these was the pharma sector’s penny stock Remedium Lifecare Ltd, in which after a rise of 5 percent for the second consecutive day, an upper circuit was applied and its price came down to the level of INR 10.40.
Remedium Lifecare stock hit an upper circuit after gaining 5% following an announcement by the company that its board of directors will consider issuing foreign currency bonds and acquiring a company next month. The board of the pharma company will consider the acquisition of Aerowater Global Trading LLC, UAE. The company is in the business of water injectables for pharma products.
Remedium Lifecare said in a stock exchange filing that the board of directors of the company will meet on Tuesday, September 3, 2024 at 01:00 pm. Last month, Remedium Lifecare entered into a strategic agreement with Angel Partners, Ltd., UK, to acquire technology for the manufacture of lithium carbonate in India, which will be effective from July 29, 2024. It also signed an annual supply agreement with Alfa Chemicals and Solvents Ltd., Turkey, which will be effective from the same date. Remedium Lifecare has split equity shares twice in the last two years and has also issued bonus twice.
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According to the data, the company distributed three bonus shares for every one share in July this year. Just before the bonus, the firm had divided the face value in the ratio of 5:1, that is, each equity share with a face value of INR 5 was divided into 5 shares of INR 1.
In July 2023, the company issued 9 bonus shares for every 5 shares. After this, in September 2023, the company divided the face value of equity shares in the ratio of 1:1. This means that each share with a face value of INR 10 was divided into two shares with a face value of INR 5.
Remedium Lifecare Share Price History
Remedium Lifecare shares have fallen by 74 per cent in the last one year. However, the stock has jumped more than 750 per cent in two years. In the last 5 years, this stock has given a return of up to 5,373 percent to its investors. The financial condition of the company is continuously improving.
For the last three years, this company has generated a return on equity of 100 percent. Apart from this, the company has grown very well in the last five years and has generated 405% CAGR. This stock shows the qualities of becoming a multibagger, because its fundamentals are getting stronger.