Multibagger Stock: The Board of Directors of Sudarshan Pharma Industries, in a meeting held on Thursday, set November 18 (Monday) as the record date for its proposed stock split. On October 1, the board approved the sub-division of equity shares in a 1:10 ratio.
"The Board of Directors of the Company has fixed the record date as November 18, for the purpose of subdividing or split of 1 (one) equity share of the company having a face value of Rs. 10/- each into 10 (ten) equity shares of the company having a face value of Rs. 1 each," the company said in Thursday's exchange filing.
A stock split is a corporate action initiated by a company to increase the liquidity of its stock in the secondary market. This process involves dividing existing shares into multiple shares, thereby reducing the nominal value of each share.
Investors holding the stock until the "record date" receive the newly split shares in their demat accounts. The stock price is then adjusted proportionally based on the predetermined split ratio, maintaining the overall market capitalisation of the company.
Sudarshan Pharma Industries operates in the pharmaceutical and specialty chemicals sectors, having a strong presence in both domestic and international markets. Its products are exported to various countries, including the UK, Australia, Uzbekistan, Syria, Oman, Taiwan, and the MENA region.
In addition to these core businesses, the company is engaged in contract manufacturing and the outsourcing of generic pharmaceutical formulations and medicines to healthcare institutions, government bodies, NGOs, and hospitals. It has developed its own distribution network and salesforce dedicated to the ethical marketing of pharmaceutical formulations and products in both domestic and international markets, as per the company's website.
In August, the company established a subsidiary, Sudarshan Maven Pharma, focusing on the development and manufacturing of a wide range of pharmaceuticals, active pharmaceutical ingredients, and intermediates. The company also acquired a 100% stake in Ratna Lifesciences Pvt Ltd, which will facilitate Sudarshan Pharma’s entry into the oncology business.
Additionally, the company is in the process of acquiring adjacent land in the Maharashtra Industrial Development Corporation (MIDC) area to expand its overall plant capacity. This land acquisition is expected to significantly boost Ratna Lifesciences' annual turnover, increasing it by approximately ten times from its current capacity, as per the company's recent exchange filings.
The company’s shares have experienced a significant upward trend over the past six months, including November, rising from ₹64.25 to the current level of ₹408, which translates to an impressive gain of 535%.
Notably, in September alone, the shares surged 123%, building on a 20% increase in August and a 90% rise in July.
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