BSERekvina Laboratories LtdMediumNeutral
Announced Mon, 16 Mar · 18:53 IST

The Board of Directors of the company has approved Increase in Authorized Capital of the company.

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AI summary

Rekvina Laboratories' board approved raising its authorised share capital from ₹3.5 crore to ₹6 crore (from 70 lakh to 1.2 crore equity shares of ₹5 face value), subject to shareholder approval. The company will acquire 100% of Radiant Parenterals Limited, a Vadodara-based pharma manufacturer of injectables and syrups, by issuing 46,27,750 of its own shares (valued at ₹10 each, total ₹4.63 crore) to Radiant's existing shareholders — making this a share-swap deal rather than a cash purchase. Separately, the company will issue 4,60,000 more shares at ₹10 each to non-promoters (Amitkumar Arunkumar Rao and his HUF) for ₹46 lakh in cash. An EGM has been fixed for April 10, 2026 to seek shareholder approvals. Post-allotment, the promoters' stake in Rekvina will rise sharply from about 29% to roughly 57.3%.

Likely market impact

Existing public shareholders will see meaningful dilution as the promoter group's stake nearly doubles, and an open offer to public shareholders is triggered under takeover rules. The deal expands Rekvina's pharma footprint — Radiant reported ₹31.67 crore revenue in FY25 — but the share-swap structure means the cost is borne by existing shareholders rather than cash, and the steep rise in promoter holding could weigh on the stock in the short term.