Welcure Drugs & Pharmaceuticals Ltd (BSE: 524661) is planning to invest around Rs. 70-80 crore in setting up a state-of-the-art cGMP standard research laboratory dedicated to agro pharma research.

The size of the project is estimated to be around Rs 70-80 crore, including laboratory infrastructure, pilot lines, analytics, and quality systems. The facilities and processes will be designed to align with applicable cGMP standards and the US FDA’s Botanical Drug Development guidance (as relevant), in order to enable participation in broader international markets for botanical/ayurvedic products, subject to all necessary approvals. The proposed site, timeline and commissioning plan will be finalised post-approvals.

Highlights:

• Company board to meet on August 22 to considering proposal for bonus issue and stock split
• Company board to consider sub-division of equity shares in 1:10 ratio
• Board to consider bonus share issue up to 1:1 (one bonus share of every one share held)
• This move is to enhance liquidity and broaden shareholding
• The company reported rise of 830 per cent in Net Profit on Q-o-Q basis at Rs 23.29 crore in Q1FY26
• Company revenue for Q1FY26 is Rs 299.91 crore 

The company proposes to raise up to Rs 80 crore by way of Qualified Institutional Placement (QIP), in one or more tranches, to fund the agro pharma research laboratory and for general corporate purposes. A meeting of the company’s board of directors will be held on August 28, 2025, to consider and, if deemed appropriate, approve the aforesaid fund-raising by QIP, including approving enabling resolutions and the issue structure, and seeking shareholders’ approval as may be required.

The objective of the laboratory will be to research, validate and scale processes for the conversion of agricultural/botanical inputs into pharma-grade products aimed at public health and societal well-being. The above proposals are subject to requisite board, shareholder, regulatory and statutory approvals and market conditions.

Additionally, the company’s board of directors met on Friday, August 22, 2025, to consider the proposal of Stock Split and Bonus Issue. Following the company’s stellar Q1FY26 financial results, this move was aimed at enhancing liquidity and broadening shareholding.

As per the proposal, the company has suggested sub-division (Stock Split) of the company’s equity shares in the ratio of 1:10 (i.e. one equity share into ten equity shares), subject to approvals as may be required. The company has also proposed issuance of bonus shares up to 1:1 (i.e., one bonus equity share for every one equity share held), subject to availability of adequate reserves and receipt of requisite approvals.

These proposals are part of Welcure’s commitment to enhancing market liquidity, expanding retail participation, and improving affordability for investors. These proposals are subject to the Board’s decision and subsequent statutory or shareholder approvals. If approved, the company will announce record dates and implementation timelines separately, in accordance with SEBI Listing Obligations and Disclosure Requirements (LODR) and applicable laws.

Speaking on this development, the company management commented, “As a part of our evolving business strategies, we have come up with this proposal for Stock Split and Bonus Issue. These proposals reflect our confidence in Welcure’s growth trajectory and our commitment to enhancing shareholder value. Coupled with our strong financial results and asset-light business model, these steps aim to make Welcure’s shares more accessible and liquid in the market.”

Recently, the company announced its Q1FY26 financial results. Driven by its strategic foray into fee-based export-oriented sourcing services, the company’s revenue from operations rose sharply to Rs. 299.91 crore in Q1FY26, up from Rs. 21.21 crore in Q4FY25. This represents growth of around 1300 per cent QoQ. Its net profit surged to Rs. 23.29 crore from Rs. 2.50 crore in Q4FY25, marking an 830 per cent increase.

Previously, the company completed seven export-sourcing assignments totalling Rs. 299.91 crore, earning fixed commission income with no inventory or logistics exposure, maintaining its debt-free status. In addition, a Rs. 517 crore global sourcing mandate from Thailand-based Fortune Sagar Impex Company Limited is expected to generate approximately Rs. 25.85 crore in service income during FY26.

About Welcure Drugs & Pharmaceuticals Ltd:

Incorporated in 1992, Welcure Drugs & Pharmaceuticals Ltd is an established pharmaceutical company in India, engaged in the manufacture and trade of a wide range of healthcare formulations. With a focus on quality, compliance, and global integration, Welcure continues to expand its presence in both domestic and international markets.

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