IOL Chemicals & Pharmaceuticals Ltd, a leading manufacturer of active pharmaceutical ingredients (APIs) and specialty chemicals, has announced a 1:5 stock split. On December 27, 2024, the company’s Board of Directors approved the share split, and shareholders gave their approval through a Postal Ballot on January 31, 2025.
Key Details of the IOL Chemicals Stock Split
- Stock Split Ratio: 1:5 (Each ₹10 share will split into five ₹2 shares)
- Board Approval Date: December 27, 2024
- Shareholder Approval Date: January 31, 2025 (via Postal Ballot)
- Record Date: March 11, 2025 (for eligible shareholders)
This is IOL Chemicals’ first stock split, aimed at increasing liquidity, making shares more affordable, and attracting more investors.
Why is IOL Chemicals Splitting its Stock?
IOL Chemicals aims to achieve four key goals with this stock split:
- Increase Liquidity: Lower share prices make it easier for more people to buy and sell shares.
- Improve Affordability: More investors can purchase shares at a lower price.
- Expand Shareholder Base: It encourages new investors to enter the market.
- Enhance Market Participation: Higher trading volumes can lead to better price discovery.
About IOL Chemicals & Pharmaceuticals
IOL Chemicals is a small-cap company with a market capitalization of ₹2,593 crore. It is one of the world’s largest producers of Ibuprofen and offers a diverse range of pharmaceutical products, including:
- Ibuprofen: For pain relief
- Clopidogrel: For cardiovascular health
- Losartan Potassium: For hypertension
- Paracetamol: For fever and pain
The company operates state-of-the-art manufacturing facilities and focuses on research and development, serving both domestic and international markets.
Financial Performance (Q2 FY25 & FY24)
Q2 FY25:
- Net Sales: ₹526 crore
- Net Profit: ₹19 crore
FY24 (Full Year):
- Net Sales: ₹2,133 crore
- Net Profit: ₹135 crore
Despite market challenges, IOL Chemicals remains profitable and continues to focus on innovation, growth, and expanding its market reach.
Final Thoughts
IOL Chemicals’ 1:5 stock split is a strategic move to boost liquidity and investor participation. With the record date set for March 11, 2025, the company is ready to execute this corporate action.
Although the stock has faced short-term declines, its strong financials, leadership in APIs, and growth potential make it a promising choice for investors interested in the pharmaceutical sector.
Disclaimer: This article is for informational purposes only and should not be considered investment advice.
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