Penny stock under ₹5: Rajnish Wellness shares are one of the small-cap penny stocks listed on Dalal Street. The penny stock will be in focus on Monday when the Indian stock market reopens after the weekend. According to the press release, the Indian healthcare company has announced a substantial acquisition offer from Thailand-based Python Chemical Company. The combined purchase value of the DavaDiscount and PlayWin brands stands at ₹1,050 crores.
"This landmark deal includes ₹650 crores for DavaDiscount, which boasts a network of over 400 outlets across India, and ₹400 crores for PlayWin, a rapidly growing Ayurvedic brand focused on personal and sexual wellness products. The transaction is structured as a pure cash deal, with Python Chemical acquiring both brands' assets and associated workforce. At the same time, Rajnish Wellness remains responsible for clearing all outstanding liabilities before the deal's completion," said Rajnish Wellness.
Valued at ₹650 Crores, the acquisition encompasses all 400+ DavaDiscount outlets, both self-owned and partnered franchises. With its significant presence in India's healthcare retail market, DavaDiscount is a key revenue driver for Rajnish Wellness. Python Chemical plans to take over the brand's assets, including physical stores, associated workforce, and infrastructure. At the same time, Rajnish Wellness will clear all liabilities related to the brand before the deal is finalized.
Priced at ₹400 Crores, PlayWin is a leading brand in the Ayurvedic personal and sexual wellness space. With a growing portfolio of products, it is poised for multi-fold growth. Python Chemical will acquire the brand name, all product lines, the formula, assets, and associated staff, positioning it to scale in the booming Ayurvedic wellness market.
The proposed acquisition by Python Chemical validates the strong brand equity of DavaDiscount and PlayWin and sets the stage for Rajnish Wellness to explore new ventures and growth areas.
Recently, Rajnish Wellness announced its plans to open 20 new Dava Discount outlets across key cities in India. This expansion marks a strategic move aimed at increasing the company's market presence in the retail healthcare segment, focusing on providing affordable healthcare solutions to consumers. The new outlets will be located in high-demand areas known for their significant healthcare sales potential, and each outlet is projected to generate annual revenues between ₹15 million and ₹20 million, with an overall revenue forecast of ₹300 million to ₹400 million annually from this expansion.
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