Share of IOL Chemicals and Pharmaceuticals Ltd jumped 5% on Monday, 30 December 2024, after the company’s Board of Directors gave approval to subdivide each fully paid-up equity share with a face value of Rs 10 into five fully paid-up equity shares with a face value of Rs 2 each. This required an amendment to the Capital Clause of the company’s Memorandum of Association.
A stock split increases the number of shares without altering their overall value by breaking up existing shares into smaller pieces.
In an exchange filing, IOL Chemicals said, “We wish to inform you that the Board of Directors of the Company, at its meeting held on 27 December, 2024, has approved, inter alia, the sub-division / split of each equity share of face value of Rs. 10 (Rupees Ten only) each, fully paid-up into 5 (Five) equity shares of face value of Rs 2 (Rupee two only) each, fully paid-up, by alteration of Capital Clause of the Memorandum of Association of the Company.”
The intended subdivision or split is subject to the approval of the shareholders through a postal ballot process, according to IOL Chemicals.
The company’s filing added, “The Record Date for determining eligibility for the sub-division/split will be communicated in due course.”
Founded in 1986, IOL Chemicals is a leading company in the organic chemicals sector and a leading generic pharmaceutical company.
IOL Chemicals are extensively utilized in a number of therapeutic fields, such as anti-platelet, anti-diabetic, anti-cholesterol, anti-convulsant, and pain management.
The company’s product line includes APIs such as Ibuprofen, Metformin, Fenofibrate, Clopidogrel, Lamotrigine, Pantoprazole, and Paracetamol. Included are speciality substances such as acetyl chloride, mono-chloroacetic acid, iso butyl benzene, and ethyl acetate.
The company is the world’s largest producer of Ibuprofen, with an installed capacity of 12,000 TPA and a completely integrated production unit.
At 1:02 pm, the shares of IOL Chemicals were trading 2.73% higher at Rs 421.10 on NSE.
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