Penny stock Evexia Lifecare rose 3 per cent on Thursday, November 14 in an otherwise weak market.
Evexia Lifecare on Wednesday said it has issued 24 crore convertible warrants on a selective basis, following shareholder approval during the Extraordinary General Meeting held on October 23, 2024, and receiving in-principle approval from the Bombay Stock Exchange on October 29, 2024. Each warrant was priced at ₹3.60, with this issuance not altering the company’s paid-up share capital.
In line with its strategic focus on enhancing its footprint in the pharmaceutical sector, Evexia Lifecare also recently entered into a draft investment agreement with DIPOned Research International Private Limited to acquire a 65 per cent equity stake. This equity investment will be executed through the issuance of preferential shares and quasi-capital, supporting Evexia’s diversification and market expansion initiatives.
DIPOned, a contemporary contract organisation specialising in drug discovery, development, and research services, presents promising opportunities for Evexia’s growth in the pharmaceutical and healthcare sectors. The acquisition is anticipated to close within 60 days, contingent on the fulfilment of specific conditions.
Stock Price Trend
The penny stock rose as much as 3 per cent in intra-day deals to its day’s high of ₹4.05. The scrip is now just 8 per cent away from its 52-week high of ₹4.4, hit earlier this month. Meanwhile, it has surged over 161 per cent from its 52-week low of ₹1.55, recorded in December last year.
The stock has also given multibagger returns in the last one year and year-to-date (YTD), rallying 134 per cent and 115 per cent, respectively.
It has declined over a per cent in November so far, after four straight months of gains. The stock rose 6 per cent in October, 16.7 per cent in September, 12.3 per cent in August and 24.7 per cent in July.
Despite the stock’s impressive performance, market experts advise investors to be cautious. Penny stocks like Evexia Lifecare are known for their volatility, and sudden corrections could accompany the stock’s rapid rise. The company’s ability to effectively utilise the new capital raised through the convertible warrants and the outcomes of upcoming regulatory approvals will be key to its long-term growth prospects. Investors should monitor the company’s board decisions and fundraising methods closely.
Evexia Lifecare Limited operates through its subsidiaries and trades various products, including chemicals, edible oils, diamonds, gold, and plastic granules. The company also provides web and software development services and manufactures eBikes. Previously known as Kavit Industries Limited, it rebranded as Evexia Lifecare in January 2021. Established in 1990, it is headquartered in Vadodara, India.
Disclaimer: The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
