Telexcell Plans INR 52 Crore Investment in Welcure Pharmaceuticals

Singaporean investor Telexcell Trade PTE LTD has made a proposal to buy a maximum of a 25 percent stake in Indian company Welcure Drugs & Pharmaceuticals Ltd at an indicative price of Rs.20 per share. This all-cash strategic investment was valued at approximately Rs.52 crore and is aimed at increasing Welcure's reach globally, especially in emerging markets.

In a filing with the regulators, Welcure made a disclosure of signing a Letter of Intent (LOI) with Telexcell Trade regarding the proposed takeover.

"This investment fits into our long-term strategy to diversify into international markets, leveraging the increasing prospects in emerging economies. We are looking forward to the potential synergy with Welcure, considering their excellent record in the pharmaceuticals industry.” a Telexcell representative stated.

Key Highlights:

• Telexcell Trade has proposed acquiring up to 25 percent of Welcure Drugs at Rs.20 per share, valuing the deal at approximately Rs.52 crore
• The investment aims to expand Welcure’s global presence, particularly in emerging markets, with a focus on synergies in the pharma sector
• The deal is subject to due diligence, final agreements, and regulatory approvals, with Telexcell confident in Welcure's growth prospects

The transaction is conditional upon due diligence, final agreements, and regulatory approvals the company said. The proposed acquisition of stake is at a premium to the current market price of Welcure, reflecting Telexcell's faith in the future growth prospects of the company.

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Moreover, Welcure recently came up with a plan to invest Rs 70 to 80 crore in establishing an agro-pharma R&D laboratory. The firm also plans to raise Rs.80 crore through a Qualified Institutional Placement (QIP) to facilitate this move as well as other corporate goals.

Telexcell's investment is a key move in its efforts to diversify and consolidate its position in the high-growth pharmaceutical industry, particularly in emerging markets.