Synopsis:
Welcure Drugs & Pharmaceuticals Ltd. rejected Telexcell Trade PTE LTD’s management control bid, allowing only secondary share purchases to protect shareholder interests and company independence.
The company, known for its presence in the healthcare and pharmaceutical exports market, recently held a board meeting to evaluate a significant investment proposal from an overseas firm. While the offer signals strong confidence in its growth potential, the discussion also centred on maintaining management independence and safeguarding shareholder interests.
Welcure Drugs & Pharmaceuticals Limited’s stock, with a market capitalisation of Rs. 67.73 crores, fell to Rs. 5.80, hitting a low of up to 4.5 percent from its previous closing price of Rs. 6.06. Furthermore, the stock over the past year has given a negative return of 21.7 percent.
What Happened?
Welcure Drugs & Pharmaceuticals Ltd. held a board meeting on September 27, 2025. The board discussed an offer from Telexcell Trade PTE LTD, Singapore, which wants to buy up to 25% of Welcure shares at Rs. 20 each.
The board rejected Telexcell’s request to control company decisions even if they buy shares. Welcure will still be run independently by its current board and team. Telexcell, like all shareholders, can give suggestions but will not get special management rights. This independence is very important to keep the company’s strategy steady and leadership stable, which is good for all shareholders in the long term.
The board told Telexcell they can only buy shares through “secondary transactions.” This means Telexcell can buy shares from existing shareholders or on the market, but Welcure will not issue any new shares. This protects current shareholders from dilution, meaning their ownership percentage won’t decrease. It also means the company will not take on new financial obligations from this deal.
Welcure is not currently raising new funds, so Telexcell cannot buy shares through special allotments or private placements now. However, if Welcure decides to raise money in the future, Telexcell will be given first chance to invest, subject to legal approvals. This shows the company values Telexcell as a strategic partner for future growth.
Also read: Power stock jumps after receiving ₹37 Cr order for supply of reactors and transformers
Company Valuations
Telexcell wants to pay Rs. 20 per share, which is more than three times the current market price of Rs. 6. The board sees this as a clear sign that Welcure’s true value is much higher. Shareholders can be confident that their ownership will not be diluted because Telexcell is buying existing shares, not new ones.
Governance and management will stay fully independent, which keeps Welcure’s trusted business plans on track. This combination of a high-value investor willing to pay a premium, no risks for the company, and preserved independence means Welcure is in a strong position to grow and create value for all shareholders.
Q1 Financial Highlight
The company reported a sharp revenue surge to Rs. 300 crore in Q1FY26 compared to Rs. 21 crore in Q4FY25, marking a QoQ jump of 1,328%, while no revenue was recorded in Q1FY25, reflecting a robust YoY base effect.
Profit after tax stood at Rs. 23 crore in Q1FY26 against Rs. 2.5 crore in Q4FY25, implying a 820% QoQ growth, while it turned around strongly from a Rs. 0.34 crore loss in Q1FY25, reflecting a significant YoY improvement.
Written By Fazal Ul Vahab C H
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
