Welcure Drugs & Pharma Board Clears Bonus Issue, Stock Split, ₹80 Crore QIP

28 Aug 2025 , 12:40 PM

Welcure Drugs & Pharmaceuticals Ltd has announced a series of board-approved measures, including a bonus issue, stock split, increase in authorised capital, and plans to raise up to ₹80 crore through a Qualified Institutional Placement (QIP). The decisions were finalised at the company’s board meeting on August 22, 2025, after a strong first-quarter performance.

1:10 Bonus Issue and 10:1 Stock Split

The board has approved a bonus issue in the ratio of 1:10, issuing 1,12,35,820 new shares by capitalising reserves. After the allotment, the company’s paid-up share capital will increase to 12,35,94,020 equity shares amounting to ₹123.59 crore.

In addition, a 10:1 stock split has been cleared, dividing one equity share of ₹10 each into 10 shares of ₹1 each. The move is aimed at improving affordability and liquidity for retail investors. The split is expected to be completed within two months of shareholder approval through a postal ballot.

Capital Raise and Expansion

The company has also proposed to raise its authorised share capital from ₹186 crore to ₹196 crore, creating additional headroom for future fundraising and investment.

Welcure plans to raise up to ₹80 crore via QIP, which will support expansion initiatives, including setting up a high-end agro-pharma research laboratory. The proposed facility, estimated to cost between ₹70–80 crore, will include advanced laboratory infrastructure, pilot lines and quality systems aligned with cGMP standards and US FDA guidelines for botanical drug development. The objective is to scale botanical inputs into pharma-grade products for domestic and global markets.

Q1FY26 Performance

The announcements come on the back of robust quarterly results. In Q1FY26, revenue surged to ₹299.91 crore, compared with ₹21.21 crore in Q4FY25. Net profit jumped more than eight-fold to ₹23.29 crore, from ₹2.50 crore in the previous quarter.

The sharp growth was driven by execution of seven export-sourcing assignments worth ₹299.91 crore, generating commission income without inventory exposure. The company has also secured a global sourcing mandate of ₹517 crore, expected to contribute about ₹25.85 crore in service income during FY26.

For feedback and suggestions, write to us at [e-mail]