Welcure Drugs & Pharmaceuticals Ltd executes Letter of Intent with Telexcell Trade PTE LTD for Strategic Equity Investment

Investor proposes to acquire up to 25% stake at Rs. 20 per share

Highlights:

India, September 03, 2025: Welcure Drugs & Pharmaceuticals Ltd (BSE: 524661) today announced that it has executed a Letter of Intent (LOI) with Singapore-based Telexcell Trade PTE LTD, wherein it is stated that Telexcell intents to acquire up to 25% equity stake in the Company at an indicative price of Rs. 20 per share.

The proposed all-cash investment is subject to due diligence, execution of definitive agreements and requisite corporate, shareholder and regulatory approvals, including those from SEBI, RBI and stock exchanges. Both parties expect to complete the due diligence and documentation process within 90 days. This strategic investment is aimed at enhancing Welcure’s global footprint, leveraging growing opportunities in emerging markets.

Speaking on this development, the company management commented, “The proposed strategic investment by Telexcell Trade PTE LTD, Singapore reinforces the strength of our business model and global ambitions. Along with our recent board-approved stock split and bonus issue, we are focused on enhancing liquidity, increasing shareholder participation and creating sustainable long-term value.”

Previously, the company announced plans to invest around Rs. 70–80 crore in establishing a state-of-the-art cGMP-standard agro pharma research laboratory. The Company also proposes to raise up to Rs. 80 crore via Qualified Institutional Placement (QIP) to support this initiative and general corporate purposes. 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.

During the board meeting held on August 22, 2025, company board considered and approved Sub-division/ split of the existing Equity Shares of the Company, such that each Equity Share having face value of Rs. 10/- (Rupees Ten only) each fully paid-up, be sub-divided/split into such number of Equity Shares having face value of Rs. 1 each fully paid-up, subject to the approval of Equity Shareholders of the Company through Postal Ballot.

In the same meeting, the board considered and approved issue of Bonus Shares in the ratio of 1:10 (One bonus equity shares for every Ten equity share) to the eligible equity shareholders of the Company as on the proposed record date by capitalization of securities premium, subject to the approval of the shareholders of the Company. The Board also approved the Increase in the Authorized Share Capital of the Company from Rs. 186,00,00,000/- to Rs. 196,00,00,000/- subject to the approval of the members.

These proposals are part of Welcure’s commitment to enhancing market liquidity, expanding retail participation and improving affordability for investors.

Driven by its strategic foray into fee-based export-oriented sourcing services, 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% QoQ. Net Profit surged to Rs. 23.29 crore from Rs. 2.50 crore in Q4FY25, marking an 830% 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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