1:10 Bonus Shares & 1:10 Stock Split Upcoming: Welcure Drugs Strengthens Global Footprint With Equity Deal

Welcure Drugs & Pharmaceuticals Ltd have announced that its board has reviewed a letter of intent (LOI) issued by a Singaporean company expressing interest in acquiring 25% of the equity of the company.

On Saturday, September 27, Welcure said that in the board meeting held on September 27, 2025, a letter of intent was reviewed from Telexcell Trade PTE LTD, Singapore, and in the LOI, an interest was stated to acquire 25% of the equity of Welcure at an indicative price of share of Rs 20.

"The Board of Directors of Welcure Drugs & Pharmaceuticals Ltd., at its meeting held on 27th September, 2025, considered and deliberated on the LOI from Telexcell Trade PTE LTD., Singapore, expressing interest to acquire up to 25% equity stake in Welcure at an indicative price of Rs 20 per share," stated the company.

The company also noted that although Telexcell sought considerable and requested some degree of control over management and governance, the Board declined all of these requests unanimously.

For a planned strategic equity partnership, Welcure Drugs & Pharmaceuticals Ltd. and Singapore-based Telexcell Trade PTE LTD have inked a non-binding Letter of Intent (LOI). Telexcell aims to acquire up to a 25% equity stake in Welcure at an approximate price of Rs 20 per share, according to the letter of intent, which was signed on September 3, 2025.

The goal of this planned all-cash transaction is to increase Welcure's worldwide footprint in the export markets for chemicals and pharmaceuticals.

"The parties intend to complete the due diligence and execution of definitive agreements within a period of 90 days from the date of this LOI. This disclosure is made in the interest of transparency and to keep stakeholders informed. The Company shall update the exchanges and stakeholders on further developments in this regard as and when they occur," said Welcure Drugs in a stock exchange filing.

The Board of Directors of the company at their meeting held on August 22, 2025 have recommended the issue of bonus shares by capitalization of a sum of Rs. 11,23,58,200 subject to approval of the shareholders in the proportion of 1:10 i.e. 1 new equity share of Rs. 10/- each of the company for every 10 existing equity share of Rs. 10/- each fully paid up of the company held by the shareholders on Record Date to be announced.

"The same is proposed to be applied in full by issuing at par 1,12,35,820 new equity shares of Rs. 10/- each as bonus shares. Consequently, the paid-up equity share capital of the Company would increase to Rs. 1,23,59,40,200/- consisting of 12,35,94,020 equity shares of Rs. 10/- each," said Welcure Drugs in its FY25 annual report.

"The Record Date for determining the eligibility of the shareholders to receive the said bonus shares will be fixed by the Board. The Board of Directors recommend for approval of members the capitalization of reserves and issue of bonus shares as proposed. The Bonus Shares on allotment shall rank pari-passu with existing equity shares of the Company and the Bonus shares are entitled for dividend declared after allotment of shares. The proposed bonus shares are not in lieu of Dividend," Welcure Drugs further stated in the report.

"The Equity shares of your Company are listed and traded on the Bombay Stock Exchange of India Limited ("BSE") and with a view to enhance the liquidity in the capital market, to widen shareholder base and to make the shares affordable/ accessible to small/ retail in the Stock Market, the Board of Directors has considered and approved the sub-division (stock split) of one equity share of the Company having a face value of Rs. 10.00 each into 10 (Ten) equity shares of face value of Re. 1.00 (One) each subject to approval of the members and any other statutory & regulatory approvals, as may be applicable. The proposed sub-division (stock split) of shares will not have any effect/result on the voting percentage/rights of any shareholders of the Company," Welcure Drugs confirmed in its FY25 annual report.

"The Record Date for the aforesaid sub-division of the Equity Shares will be fixed in the due course after approval of the shareholders is obtained for the proposed sub-division (stock split). In the opinion of the Board, proposed sub-division (stock split) of the equity shares is in the best interest of the investors of the Company and therefore the Board at its meeting held on August 22, 2025, recommended the aforesaid sub-division (stock split) to the shareholders. Proposed sub-division (stock split) will not have any impact on the amount of authorized, subscribed and paid-up Share capital of the Company on account of sub-division (stock split) of equity shares," Welcure Drugs highlighted.

Additionally, the firm has announced that its 33rd Annual General Meeting for the fiscal year 2024-2025 will take place on Saturday, September 27.