Welcure Drugs & Pharmaceuticals has announced that it will consider a 1:10 stock split and the issuance of 1:1 bonus shares on August 22nd. The company's shares have seen a surge, driven by b quarterly results and robust international business.
Corporate Update: Welcure Drugs, an Indian pharmaceutical company, has decided to consider proposals for a 1:10 stock split and 1:1 bonus share issuance before its board on August 22, 2025. This move will increase the number of outstanding shares and make them more accessible price-wise. The company has recently reported outstanding quarterly performance, which has boosted investor confidence and led to a surge in shares. This decision is part of the company's strategy for growth and benefiting investors.
What are Stock Splits and Bonus Shares?
A stock split is a method where a company divides its existing shares into smaller portions. For example, if a company implements a 1:10 stock split, each shareholder will now possess 10 new shares for every one they previously held, but each share's price will be approximately one-tenth of the original. This lowers the share price and makes it easier for more investors to purchase the stock. A stock split increases the stock's liquidity, or availability in the market, which improves trading.
Bonus shares mean that the company issues new shares to its shareholders free of charge, in proportion to their existing holdings. For instance, a 1:1 bonus share means that if you own 100 shares, the company will give you an additional 100 shares for free. This increases shareholders' ownership without requiring them to spend extra money. Bonus shares give investors confidence that the company is performing well and will continue to grow in the future.
Quarterly Results Raise Investor Expectations
Welcure Drugs reported a net profit of ₹23.29 crore in the April-June 2025 quarter, which is many times higher than the ₹2.5 crore in the previous quarter. This outstanding performance strengthens the company's financial position. Additionally, the company's revenue from operations in this quarter was ₹299.91 crore, significantly higher than the ₹21.21 crore in the March quarter.
These improved results are a clear indication of the company's 'asset-light' and 'fee-based' model, which delivers better returns with lower investment.
International Expansion and New Achievements
Welcure has recently secured seven new export-sourcing projects, with a total value of ₹299.91 crore. These projects expand the company's global reach and establish its presence in new markets. Furthermore, a global sourcing contract worth ₹517 crore with Fortune Sagar Impex of Thailand is a major achievement for the company.
This international expansion is a key part of the company's growth strategy. By being active in foreign markets, the company will gain new sources of income and diversify, thereby reducing risk. This increases the expectation of stable and continuous growth in the future.
Company's Current Status
Welcure Drugs was founded in 1992, and the company is actively involved in the manufacturing and sale of medicines. The company manufactures tablets, capsules, and dry syrups and has also recently started importing and selling medicines from abroad.
Currently, the company is in ESM (Enhanced Surveillance Measure) – Stage 1, which means that the company is under the supervision of the stock exchange. This situation usually applies to companies that are under additional scrutiny for financial or administrative reasons.
