20 Oct , 2021 By : Kanchan Joshi
Ipca Laboratories on Wednesday informed that its board will meet next month on Saturday, 13 November, 2021, to consider the proposal for sub-division of shares of stock split of every share held into 2 shares (1:2). The board will also consider declaration of interim dividend at the meeting.
The company further informed that it has decided to fix 23rd November, 2021 as the 'Record Date’ for the members entitlement of interim dividend for the financial year 2021-22 that may be declared at the said Board Meeting on 13 November, 2021.
“A meeting of the board of directors of the company will be held on Saturday, 13 November, 2021, to consider sub-division of every 1 (one) equity share of the nominal/face value of Rs. 21- each into 2 (Two) equity shares of the nominal/face value of Re. 1/- each," Ipca Labs announced in an exchange filing.
A stock split increases the number of shares that are outstanding by issuing more shares to the current shareholders. Stock split decreases the market price of the individual shares, however, does not result in changing the market capitalization of the company.
A company engages in stock-split decision to make its stock more affordable if its price levels are high, which in thus would lead to increase in liquidity in the stock.
Shares of Ipca Labs were trading over 1% lower at Rs2,320 apiece on the BSE. The pharmaceutical company manufactures over 350 formulations and 80 APIs for various therapeutic segments. It is one of the world’s largest manufacturers and suppliers of APIs (Active Pharmaceutical Ingredient).
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