Sudarshan Pharma sets Nov 18 as the record date for the 1:10 split

Sudarshan Pharma Industries has announced a stock split to enhance share market investment opportunities and liquidity. The company’s Board of Directors confirmed November 18 as the record date for this significant corporate action during a meeting on Thursday.

Details of the stock split

The board approved a 1:10 stock split, reducing the face value of each equity share from ₹10 to ₹1. This means every shareholder will receive 10 shares for each share held as of the record date. The company’s recent exchange filing explained that this move aims to increase liquidity in the secondary market without affecting its overall market capitalisation.

What is a stock split?

A stock split is a strategic corporate action designed to make shares more affordable for retail investors. By dividing existing shares into multiple units, the nominal value per share decreases, making the stock more accessible while keeping the company’s total market value unchanged. Investors holding shares until the record date will see the new shares credited to their demat accounts, with prices adjusted proportionally to the split ratio.

The company’s expanding footprint

Sudarshan Pharma Industries operates in the pharmaceutical and speciality chemicals sectors. The company exports its products to markets in the UK, Australia, Taiwan, the MENA region, and other countries. In addition to manufacturing, Sudarshan engages in contract manufacturing and outsourcing generic pharmaceutical formulations to healthcare organisations, NGOs, and hospitals.

In August, the company expanded its portfolio by acquiring Ratna Lifesciences Pvt Ltd, entering the oncology space. A new subsidiary, Sudarshan Maven Pharma, was also launched to focus on active pharmaceutical ingredients and other pharmaceutical products. To support growth, the company is acquiring additional land in the Maharashtra Industrial Development Corporation (MIDC) area. The main aim is to boost production capacity and drive a tenfold increase in Ratna Lifesciences' annual turnover.

Remarkable stock performance

Sudarshan Pharma’s shares have surged by 535% over the past six months, rising from ₹64.25 to ₹408. This stellar performance includes a 123% gain in September, following significant increases in July and August.

Key takeaways

1. Sudarshan Pharma’s stock split is scheduled for November 18, with a 1:10 ratio.
2. The move aims to improve liquidity and enhance share market investment appeal.
3. The company is expanding its pharmaceutical operations, particularly in oncology.
4. Its stock price has grown significantly, marking a 535% increase in six months.

This development reinforces Sudarshan Pharma’s robust growth strategy and strong market presence.