Remediuim Life BSE RI review - (Avoid)

•    The company is a trader/distributor of wide range of raw material utilized for pharmaceuticals, and other related chemicals. 
•    The company posted inconsistency in its top and bottom lines for the reported periods.
•    It is operating in a highly competitive and fragmented segment.
•    Though at par, the RI appears fully priced, counter we well managed above RI price to lure investors. 
•    There is no harm in skipping this “High Risk/Low Return” at par bet.

PREFACE:
RLL’s Right Issue (RI) is opening on April 30, 2025, and its offer document is dated April 24, 2025, but it was made available on designated exchange only by late eve of April 28, 2025. Thus, late submission of offer document move is continuing unabatedly violating the compliances in that regard. This kind of attitude irks investors at large. 

ABOUT COMPANY:
Remedium Lifecare Ltd. (RLL) was originally incorporated as Roxy Engineers Pvt. Ltd., it changed its name as Roxy Exports Ltd. in 1995, and then again changed in name to Remedium Lifecare Ltd in November 2020. 

It was initially engaged in the business of manufacturing and distribution of bicycle and its parts. The Company had its distribution network throughout India. Thereafter, the Company discontinued its business of manufacturing and distribution of bicycle and its parts. The Company entered into the business of manufacturing and trading of atmospheric water generating machines known as “Air-O-Water”. Starting from the financial year 2020-21, the Company has ceased the manufacturing and trading of Air-O-Water Machines and has shifted its focus to trading and distributing raw materials used in the pharmaceutical industry.

Currently, the Company is engaged in trading and distribution of wide range of raw material utilized in pharmaceuticals, including amino isophthalic acid, tellurium (IV) oxide, Grignard reagent, iodine, selenium metal powder, and trimethyl sulfoxonium iodide, since 2020. It possess the necessary trading experience, resources, and supply chain capabilities for procuring lithium, intermediates, and other products for Active Pharmaceutical Ingredients (APIs).

RLL offers a comprehensive range of products, including pharmaceutical intermediates and ingredients for active pharmaceutical ingredients (APIs), as well as nutraceutical APIs and components for personal care and veterinary applications. All its products are in compliance with Indian and international pharmacopoeia standards. Its commitment to timely and reliable delivery is key to fostering strong relationships with clients. By deeply understanding customer needs and leveraging its execution capabilities, it has successfully secured repeat business from existing clients while also attracting new ones. As of December 31, 2024, it had just 8 employees on its payroll.

ISSUE DETAILS:
The company is offering Rights Issue (RI) of 491904000 equity shares of Rs. 1 each at par to mobilize Rs. 49.19 cr. The RI opens for subscription on April 30, 2025, and will close on May 14, 2025. The company is offering RI in the ratio of 61 for 50 to its eligible stakeholders as of record date of April 15, 2025. The company is asking full money on application for number of shares applied. Post allotment, shares will be listed on BSE. The company is spending Rs. 0.70 cr. for this RI process, and from the net proceeds, it will utilize Rs. 20.00 cr. as capex on new quality control laboratory facility, Rs. 24.00 cr. for working capital, and Rs. 4.49 cr. for general corporate purposes.   

The RI is self-managed by the company itself, and Bigshare Services Pvt. Ltd. is the registrar to the issue. 

Post-RI, company’s current paid-up equity capital of Rs. 40.32 cr. will stand enhanced to Rs. 89.51 cr. Based on RI pricing, the company is looking for a market cap of Rs. 89.51 cr. 

FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has posted a total income/net profit/ of Rs. 509.92 cr. / Rs.  5.43 cr. (FY23), Rs. 4062.79 cr. / Rs. 32.73 cr. (FY24). For 9M of FY25 ended on December 31, 2024, it earned a net profit of Rs. 4.17 cr. on a total income of Rs. 151.07 cr. Thus, it posted inconsistency in its top and bottom lines for the reported periods. It is operating in a highly competitive and fragmented segment. 

DIVIDEND POLICY:
The company has not declared any dividends for the reported periods of the offer document. It has formulated a dividend policy based on its financial performance and future prospects. 

SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 539651 (FV Re.1).
The scrip last closed on cum-right basis at Rs. 2.22 on April 11, 2025, and opened on an ex-right basis at Rs. 1.58 on April 15, 2025. Since then, it has marked a high/low of Rs. 1.82 / Rs. 1.58. The scrip last closed at Rs. 1.85 as of April 29, 2025. For the last 52 weeks’ it has posted a high/low of Rs. 19.14 / Rs. 1.21. The counter is currently under EMS: Stage 2, with periodic call auction.

The promoters’ holding has been constant at 1.11% for the last three quarters ended with March 31, 2025. The counter is well managed above the par value to lure investors.