Rama Phosphates Limited (RPL), a leading manufacturer of Single Super Phosphate (SSP) fertilizers in India, has announced a 1:2 stock split. This move aims to improve market liquidity and make shares more accessible to investors. The stock split will reduce the face value of each equity share from ₹10 to ₹5, effectively doubling the number of shares held by shareholders.
Key Details of the Stock Split
- Record Date: February 7, 2025. Shareholders listed in the company’s records on this date will qualify for the subdivision.
- Stock Split Ratio: Each existing equity share with a face value of ₹10 will be split into two shares with a face value of ₹5.
About Rama Phosphates Ltd.
Founded in 1984 and headquartered in Mumbai, Rama Phosphates Ltd. is a well-known name in the fertilizer and chemical industry. The company operates in Pune, Indore, Udaipur, and Nimbahera, focusing primarily on the Western Indian market, which accounts for 60% of India’s fertilizer consumption.
Product Portfolio
RPL produces a wide range of products, including:
- Fertilizers: Single Super Phosphate (SSP), fortified fertilizers, and water-soluble fertilizers.
- Chemicals: Sulphuric Acid and LABSA (Linear Alkyl Benzene Sulphonic Acid).
- Agri-Products: Soya edible oil, de-oiled cakes, and lecithin.
The company is known for its innovative products and quality standards, earning recognition from the Fertiliser Association of India.
Financial Highlights
Quarterly Performance (Q2 FY25):
- Net Sales: ₹209.46 crore, a 22.17% rise from ₹171.45 crore in Q2 FY24.
- Net Profit: ₹3.08 crore, up 361.54% from ₹0.67 crore in the same quarter last year.
- EBITDA: ₹10.90 crore, an 80.17% increase compared to ₹6.05 crore in Q2 FY24.
Strategic Rationale for the Stock Split
The stock split reflects RPL’s strategy to make share ownership more affordable for small investors. By reducing the price per share, the company aims to:
- Attract More Investors: Broaden its shareholder base.
- Increase Market Activity: Boost trading volumes.
- Strengthen Market Position: Reinforce its leadership in the industry.
With strong financial performance, innovative products, and a focus on creating value for shareholders, RPL is well-positioned to grow in the fertilizer and chemical sectors. Investors should mark February 7, 2025, as the record date for this important corporate action.
Disclaimer: This article is for informational purposes only and does not provide investment advice.
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