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IOL Chemicals to Consider Stock Split on December 27

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Synopsis:

IOL Chemicals and Pharmaceuticals will consider a stock split at its board meeting on December 27. Despite recent growth of 16% in a month, the IOL Chemicals and Pharmaceuticals share price remains 12% lower year-on-year.


IOL Chemicals and Pharmaceuticals Ltd. has announced a board meeting on December 27, 2024, to discuss a potential stock split. The company plans to alter its share capital by subdividing its fully paid-up equity shares of ₹10 face value, aiming to enhance liquidity and affordability for investors.

Also read: F.I.L.A. to Sell 4.57% Stake in DOMS via Block Deal at ₹2,755/Sh

DOMS INDUSTRIES LIMITED

Trade

2930.3-125.09 (-4.09 %)

Updated - 19 December 2024
2950.00day high
DAY HIGH
2840.00day low
DAY LOW
3414277
VOLUME (BSE)

Key Takeaways:

  • Meeting date: December 27, 2024.

  • Proposed action: Subdivision/split of ₹10 face value equity shares.

  • Objective: Increase affordability and liquidity in the stock market.

  • Current performance: Share price dropped 3.17% on December 18, closing at ₹405.95.

Also read: Yatharth Hospital Opens QIP with Floor Price at ₹626

IOL Chemicals and Pharmaceuticals Share Price Performance

IOL Chemicals and Pharmaceuticals share price closed at ₹405.95, marking a 3.17% decline on December 18. Despite this, the stock has risen over 16% in the past month, outperforming the Nifty50 index, which gained just over 3% during the same period. However, the one-year return on the stock remains negative, down nearly 12%.

Metrics

Value

Last closing price

₹405.95

Monthly performance

+16%

Yearly performance

-12%

Nifty50 one-month performance

+3%

Financial Snapshot of IOL Chemicals

In Q2 FY24, the company reported consolidated net sales of ₹525.75 crore, a 3.59% decline year-on-year. Net profit dropped by 49.43% to ₹19.15 crore compared to ₹37.87 crore in Q2 FY23. EBITDA also declined by 32.69%, reflecting market challenges.

Metric

Q2 FY24

Q2 FY23

Change

Net Sales

₹525.75 Cr

₹545.30 Cr

-3.59%

Net Profit

₹19.15 Cr

₹37.87 Cr

-49.43%

EBITDA

₹48.00 Cr

₹71.31 Cr

-32.69%

Strategic Context of the Stock Split

The planned stock split reflects IOL Chemicals’ efforts to make its shares more accessible to retail investors. This move is expected to improve market participation and liquidity while supporting the company’s growth aspirations in therapeutic areas such as pain management, anti-diabetes, and antihypertensive segments.

The stock split discussion by IOL Chemicals and Pharmaceuticals demonstrates its intent to enhance shareholder value and market accessibility. Investors will closely watch the December 27 board meeting for further developments.

Also read: Zaggle Prepaid Launches QIP at ₹550.73/Share Floor Price

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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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