Shilpa Medicare’s Board has given the green signal for the Qualified Institutional Placement (QIP) of equity shares. This strategic move allows the company to raise funds from institutional investors without resorting to a public offering.
The set floor price for the QIP stands at Rs 477.33 per share, as specified in the regulatory filing. Additionally, the company has authorized the opening of the issue on April 8. Shilpa Medicare retains the flexibility to offer the issue at a discount of up to five percent of the floor price.
However, despite this significant development, Shilpa Medicare reported a consolidated loss of Rs 6.6 crore for the quarter ending December FY23, in stark contrast to the profit of Rs 9.56 crore registered during the same period the previous year.
Financial Performance of Shilpa Medicare
This downturn can be attributed to a decline in revenue, operating margin, and increased finance costs. During Q3FY24, the company’s consolidated revenue witnessed a year-on-year drop of 3.6 percent, amounting to Rs 262.5 crore.
Furthermore, its EBITDA (earnings before interest, tax, depreciation, and amortization) experienced a significant decline of 30.6 percent to Rs 31.3 crore, resulting in a margin contraction of 463 basis points, landing at 11.92 percent compared to the corresponding period in the previous fiscal year.
Stock Performance in last one year
In terms of stock performance, Shilpa Medicare shares have demonstrated positive returns across multiple time frames. Over the past month, the stock has given a commendable 24.98% return, showcasing its stability and growth potential. The last six months have seen even more impressive results, with a substantial increase of 54.17%, indicating a strong upward trend.
Year-to-date, Shilpa Medicare shares have surged by 60%, reinforcing the stock’s positive momentum in the current fiscal year. Looking at the broader picture, the stock has delivered an impressive return of over 120.70% in the last twelve months, emphasizing its sustained growth and attractiveness to investors.