Agra Investment：1：5 Stock Split, 1：1 Bonus Issue： Below Rs 200, Pharma Stock To Give Double Rewards： 250 Shares To Become 2500 Shares
An NSE-listed pharmaceutical company with penny stock status, Vaishali Pharma has announced double rewards for its investorsAgra Investment. This multi-bagger penny stock that gained over 575% on NSE, is going to deliver a 1:1 bonus issue and a 1:% stock split soon. The announcement of double treats is because the company expects to continue its strong growth momentum with innovation.Indore Investment
The pharma stock ended at Rs 194.24 apiece on NSE, after the announcement. During the trading hours of August 29, the stock touched an intraday high of Rs 202.40 apiece, which is near its 52-week high of Rs 203.60 apiece.
Currently, it has a market cap of Rs 208.21 crore.
YTD, Vaishali Pharma stock is up by over 4%. In a year, the stock rallied by over 52% on the BSE. Moreover, in 5 years span, the stock has skyrocketed by a whopping 576%.
Vaishali said that the board of directors have recommended the issue of bonus equity shares in the ratio of 1:1 (1 Bonus share equity for every 1 equity share held in the company as of the record date) in the meeting held on August 28, 2024, along with stock split, subject to necessary regulatory and shareholders’ approvals.
Its bonus issue is aimed at rewarding existing shareholders, enhancing liquidity, and expanding the shareholder base
The company’s board also approved the sub-division of 1 equity share of Rs. 10 face value into five equity shares of Rs. 2 face value each.
Accordingly, the stock split ratio is 1:5. Simply put, 1 existing share of Vaishali Pharma to sub-divide into 5 smaller shares.
The record date for both the bonus issue and stock split will be announced in due course.
Also, the company’s board considered the proposal for raising funds by way of equity shares, debentures or other securities through rights issues, private placement, qualified institutions placement (QIP), preferential issues or any other method.
Atul Vasani, Chairman and Managing Director, Vaishali Pharma Ltd said, “We are proud to inform our stakeholders that the company is making significant strides in its long-term growth strategy, delivering excellent operational and financial results. Consideration of stock split and bonus shares are in line with the company’s vision to reward the shareholders and earn their long-lasting trust and confidence. This move will not only reward our existing shareholders for their continued support but also increase the company’s equity base, thereby enhancing liquidity. With a focus on growth and innovation, the company is making its mark through strategic initiatives, promising to become a significant presence in the evolving pharmaceutical sector.”
In its filing, Vaishali said, “Catering to semi-regulated and non-regulated markets across the world, the company had recently obtained 19 registrations across Southern Africa, West Africa, the Gulf region, Latin America and ASEAN region. These registrations are poised to contribute around RsAhmedabad Stock. 100 million to the company’s annual revenue.”
Backed by a strong product portfolio and distribution network, the Company had reported robust financial performance for Q1FY25. For the quarter ended on June 30, 2024, the Company’s sales increased by 34.70% to Rs 18.08 crore in Q1FY25 compared to Rs 13.42 crore during Q1FY24. Net Profit of the company rose 7.13% to Rs 1.70 crore as against Rs 1.59 crore during the previous quarter ended June 2023.
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