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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.’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.
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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
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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.
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 |
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.
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