Shares of a multibagger healthcare stock hit the 20 percent upper circuit to reach a record high of ₹ 324.65 apiece on the National Stock Exchange (NSE). A huge buying interest emerged after it announced that Tata Capital Healthcare Fund will be buying a stake in it through a preferential issue.
The company informed the exchanges that its board has approved the execution of a share subscription agreement dated August 03, 2023. Accordingly, the promoters of the company will be issuing 23,09,910 equity shares as a part of their preference issue to Tata Capital Healthcare Fund II (acting through its trustee Tata Trustee Company Private Limited).
Sakar Healthcare manufactures pharmaceutical formulations in the form of liquid injectables, tablets, capsules, oral liquid syrups, dry powder injectables and syrups. In addition, it operates as a contract development and manufacturing organization (CDMO) for various leading pharmaceutical companies.
It informed the bourses about its decision to raise nearly ₹ 60 crores via the allotment of over 23 lakh equity shares at an issue price of ₹ 259.75 apiece on a preferential basis. Most of these funds will be used to reduce debt and augment capacity-addition plans for future growth. These shares are being allotted to Tata Capital Healthcare Fund II, which will hold a 10.82 percent stake in the company, once the allotment is completed. This allotment is subject to the approval of regulatory authorities and shareholders.
Sakar Healthcare’s share price increased by 65.34 percent in the past year and by 480.77 percent in the past three years, ascending from ₹ 55.90 to ₹ 324.65. Therefore, if an investor had invested ₹ 1 lakh in the company’s shares three years ago, the value of their holdings would have been ₹ 5.80 lakhs today!
With a market capitalization of ₹ 515 crores, Sakar Healthcare is a small-cap company. It has a low return on equity of 8.48 percent and an ideal debt-to-equity ratio of 0.69. Its shares were trading at a price-to-earnings ratio (P/E) of 39.44. The company’s promoters hold a 60.72 percent stake in it, followed by retail investors with 23.54 percent and foreign institutions with 15.74 percent.
Written by Simran Bafna
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