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IOL Chemicals Approves Stock Split in 1:5 Ratio to Enhance Liquidity

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Synopsis:

IOL Chemicals and Pharmaceuticals Ltd. has announced a 1:5 stock split to improve liquidity and attract more investors. The move reduces the share's face value to Rs 2 from Rs 10.

IOL Chemicals and Pharmaceuticals Ltd. news today

IOL Chemicals and Pharmaceuticals Ltd.’s board has approved a stock split in the ratio of 1:5, aiming to make its shares more affordable and enhance liquidity in the market. Post-split, each equity share with a face value of Rs 10 will be subdivided into five shares of Rs 2 face value each. This decision aligns with the company’s strategy to attract a wider investor base.

Also read: KEC International Targets 9% EBITDA Margin by FY26, Strong Order Book

IOL CHEM AND PHARMA LTD

Trade

4153.54 (0.86 %)

Updated - 02 January 2025
418.70day high
DAY HIGH
413.45day low
DAY LOW
199917
VOLUME (BSE)

Key Takeaways:

  • Stock Split Ratio: 1:5

  • Current Face Value: Rs 10

  • New Face Value Post-Split: Rs 2

  • Expected Completion: Within two months of shareholder approval

  • Record Date: To be announced after shareholder approval

Also read: JSW Energy Acquires O2 Power for ₹12,468 Crore, Largest Deal Yet

Impact on IOL Chemicals’ Market Position

The stock split is expected to enhance investor participation by making IOL Chemicals’ shares more affordable. With a promoter holding of 48.19% as of September 2024, the company has demonstrated steady growth, especially in its niche segment of active pharmaceutical ingredients (APIs) and speciality chemicals.

IOL Chemicals has a diversified API portfolio, catering to pain management, anti-diabetic, and anti-hypertensive therapeutic areas. Notably, it remains the only backward-integrated organisation producing all intermediates and key materials for ibuprofen.

Current Market Performance

The IOL Chemicals share price closed at Rs 409.95 on the BSE, recording a marginal dip of 0.34% compared to the benchmark Sensex's 0.3% gain on the same day. However, the stock has surged over 13% this year, showcasing consistent investor confidence.

Details

Pre-Split

Post-Split

Face Value

Rs 10

Rs 2

Number of Shares

1

5

Promoter Holding (as of Sep 2024)

48.19%

Unchanged

Share Price (9 Dec 2024)

Rs 409.95

Adjusted accordingly

Timeline for the Stock Split

The stock split is expected to be executed within two months of securing shareholder approval. The company has yet to announce the record date, which will determine eligibility for the split.

The 1:5 stock split by IOL Chemicals aims to improve liquidity and make shares more appealing to a broader investor base. As the IOL Chemicals share price adjusts post-split, market participants anticipate an increase in trading activity and accessibility.

Also read: IL&FS Engineering Secures ₹302.82 Crore Bhubaneswar Metro Phase-I Project

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Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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