During Tuesday’s trading session, the shares of a company engaged in manufacturing and trading in pharmaceuticals, chemicals and lifecare products surged 3.8 percent to Rs. 4.1 on BSE, after signing an agreement to acquire a 51 percent stake in Vittal’s MediCare Private Limited to expand its operations.
With a market capitalisation of Rs. 447 crores, at 10:56 a.m., the shares of Evexia Lifecare Limited were trading in the green at Rs. 4, up by 1.3 percent, as against its previous closing price of Rs. 3.95.
What’s the News:
According to the latest regulatory filings with the BSE, Evexia Lifecare Limited signed a Term sheet to acquire a 51 percent stake in Vittal’s MediCare Private Limited, for a total cash consideration of Rs. 35 crores.
This acquisition represents a strategic alignment aimed at capitalising on synergistic opportunities for business growth.
The estimated timeline for completing the acquisition is within 45 days from signing the Share Purchase Agreement and any related agreements, including the Shareholders Agreement, necessary for the completion of the proposed transaction.
About the Target Entity:
Incorporated in 2011, Vittal’s MediCare Private Limited is engaged in the business of Diagnostic Centers.
Upon completion of the transaction outlined in the term sheet, it will become a subsidiary of Evexia Lifecare Limited.
Over the past three financial years, the company’s turnover was Rs. 25.72 crore in FY21, Rs. 66.25 crore in FY22, and Rs. 38.5 crore in FY23.
Additional News:
Evexia Lifecare Africa Limited, a wholly-owned subsidiary of Evexia Lifecare Limited, has signed a term sheet to invest in 10 LLCs/Entities in the UAE for business expansion.
The existing partners of these LLCs are obligated to incorporate a Special Purpose Vehicle (SPV) in the form of a Limited Liability Company (LLC) under UAE laws and transfer all of its holdings in all the LLCs through swap, resulting in them becoming the shareholders of the SPV, which will own 100 percent of its capital.
After the capital contribution, Evexia Lifecare Africa Limited will hold a 51 percent share in the SPV, while the existing partners will hold 49 percent.
Evexia Lifecare Africa Limited plans to invest a total of Rs. 190 crores (AED 8,30,78,268) into the SPV, contingent on completing the transaction.
This capital contribution will be paid to the SPV within 45 days of signing the Contribution Agreement/Partners Agreement and any other necessary agreements.
Financials:
The company experienced significant growth in its revenue from operations, showing a year-on-year rise of around 51.4 percent from Rs. 14 crores in Q1 FY24 to Rs. 21.2 crores in Q1 FY25.
Similarly, its net profit increased marginally during the same period from Rs. 0.22 crores to Rs. 0.24 crores, indicating a rise of nearly 9 percent YoY.
Stock Performance:
The stock has delivered multibagger returns of nearly 123 percent of returns in one year, and around 44.6 percent returns in the last six months. So far in 2024, the shares of Evexia Lifecare have given multibagger returns of about 110.5 percent.
About the company:
Evexia Lifecare Limited, formerly known as Kavit Industries Limited, is engaged in the business of trading chemicals, agricultural produce and various other products of consumer goods.
Written by Shivani Singh
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