Penny stock: Pharma company's share price hits 5% upper circuit; here's why

Stock Market Today: Penny stock from the pharma sector — Welcure Drugs & Pharmaceuticals — rose to the 5% upper price band in intraday trade on Wednesday, August 20.

The gains in the stock followed after the company informed the bourses about its proposed agro-pharma research laboratory and a board meeting slated for next week to consider fundraising via qualified institutional placement (QIP).

Welcure Drugs & Pharmaceuticals on August 20 intimated the exchanges about the proposed agro-pharma research laboratory & about a Board Meeting to be held on August 28, 2025, to consider fundraising by QIP.

Giving details about the proposed project, Welcure Drugs & Pharmaceuticals said that the goal for setting up an agro-pharma research laboratory is to develop, validate, and scale technologies for converting agricultural/botanical inputs into pharmaceutical-grade products for public health and societal well-being.

The Quality & Compliance Intent is that facilities and processes will comply with cGMP standards and the US FDA's Botanical Drug Development guidance, allowing for participation in international markets for botanical/ayurvedic products with necessary approvals.

The estimated project cost is ₹70-80 crore, which includes laboratory infrastructure, pilot lines, analytics, and quality systems.

The implementation site, timetable, and commissioning plan will be finalised after clearances.

Welcure Drugs & Pharmaceuticals Ltd. is an Indian firm that manufactures and trades pharmaceuticals and medical items. It was founded in 1992 by Dharam Chand Jain. The company provides a variety of items, including bulk pharmaceuticals, drug intermediates, and pharmaceutical formulations.

Welcure Drugs & Pharmaceuticals' share price opened at ₹12.70 on the BSE on Wednesday. Welcure Drugs & Pharmaceuticals' share price at the time of opening was almost 5% higher compared to the previous day's closing price of ₹12.10. The ₹12.70 level for Welcure Drugs & Pharmaceuticals' share price remained the upper price band. Hence, the Welcure Drugs & Pharmaceuticals share price was locked in the upper circuit.

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