Welcure Board Approves 1:10 Bonus and 1:10 Stock Split; Authorised Capital Increase to ₹196 Crore

New Delhi, Aug 25, 2025: Welcure Drugs & Pharmaceuticals Ltd. (BSE 524661, Symbol WELCURE, ISIN INE331C01017) approved a stock split and bonus issue to expand retail participation and improve liquidity. The board also approved an increase in the company’s authorised share capital to ₹196 crore and appointed a director, subject to shareholder approval.

The shareholder approval will be taken via postal ballot, for which the company appointed Central Depository Services (India) Ltd. as the e-voting agency. The record dates for the same are to be announced.

Welcure Drugs & Pharmaceuticals Ltd. is a small-cap pharmaceutical company listed on the BSE. The company is engaged in producing and marketing pharmaceutical formulations and health products. Known for operating in the niche segment of affordable medicines, Welcure has remained relatively low-profile in the broader pharma landscape but continues to generate strong financial ratios, including a healthy return on equity, reflecting its efficiency despite limited scale.

Market Snapshot

As of market close on August 25, 2025, shares of Welcure Drugs & Pharmaceuticals Ltd. settled at ₹11.33, locked at the lower end of their price band, compared to the previous close of ₹11.92. The stock recorded a turnover of ₹88.17 lakh with a traded quantity of 7.78 lakh shares, broadly in line with its two-week average.

With a market capitalisation of ₹127.48 crore and a free-float cap of ₹15.16 crore, the company trades in the XT group under T+1 settlement. Financially, it maintains an EPS of ₹2.50, a P/E ratio of 4.53, PB of 1.25, and an ROE of 27.59%, reflecting strong returns relative to its size within the pharmaceuticals sector.

Action Details and Regulatory Context

Welcure board’s proposed corporate actions are aimed at improving liquidity and widening retail participation in its stock. The board has approved both a 1:10 stock split and a 1:10 bonus issue. Under the stock split, one equity share of ₹10 will be split into ten shares of Re 1 each. Whereas, under the bonus issue, one fully paid share will be issued for every ten shares held.

The bonus will be funded through the capitalisation of securities premium, free reserves, or retained earnings. As of June 30, 2025, the company had free reserves of over ₹13 crore, which are sufficient to meet the estimated requirement of a little over ₹11 crore for the bonus.

Some key aspects of the proposed actions include:

• Record dates: To be announced following shareholder approval via postal ballot.
• Completion timeline: Expected within two months from board approval.
• E-voting agency: Central Depository Services (India) Ltd. will oversee the voting process.
• Regulatory compliance: Disclosures have been made in line with SEBI LODR Regulation 30, Para A of Part A of Schedule III.

Together, these measures reflect the company’s intent to increase shareholder value, enhance tradability of its shares, and ensure regulatory transparency throughout the process. However, the whole process is subject to shareholder approval via postal ballot.

Impact of the Actions

The proposed actions will significantly impact Welcure Drugs & Pharmaceuticals Ltd. They will be expanding the company’s share base while maintaining the overall capital structure balance. The split will increase the number of outstanding shares tenfold; however, there will be no change in the current paid-up capital. Further, the bonus issue of one share for every ten held will expand the share base, raising the paid-up capital proportionately. Together, the two moves will improve trading volumes, widen investor participation, and strengthen the company’s equity profile without altering shareholder value in absolute terms.

Authorised Capital and MOA Amendment

As the bonus issue and stock split will result in altering the present share capital, the board has approved to increase the authorised share capital of the company from ₹186,00,00,000 to ₹196,00,00,000, with a corresponding amendment to Clause V of the Memorandum of Association. The proposed clause will reflect the revised authorised capital. The alternation is currently subject to shareholder approval.

REF: https://www.bseindia.com/xml-data/corpfiling/AttachHis/49931763-b400-4b4c-b772-d22c035e0d69.pdf

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