30 Dec , 2024 By : Debdeep Gupta
Shares of IOL Chemicals and Pharmaceuticals surged over 5 percent on December 30 as investors lapped up the stock after the board greenlit the proposal for a five-for-one stock split. Shareholders will get five shares for each share they currently own.
Following the announcement, investors hoarded shares of the company in hopes of getting rewarded with additional stocks following the split. A stock split is a corporate action in which a company divides its existing shares into multiple shares to boost the stock's liquidity. While the number of shares outstanding increases, the total value of the shares (market capitalization) remains the same, as the split does not change the company's overall value.
This also marks the first stock split in the company's history. IOL Chemicals is yet to announce the record date for this stock split.
At 10.46 am, shares of IOL Chemicals were trading at Rs 424.05 on the NSE. The up move was also driven by heavy trading volumes. So far, nine lakh shares of the company have changed hands, already higher than the one-month daily traded average of seven lakh shares. The stock has also surged close to 15 percent in the past month.
Last week, shares of the company had also surged close to 8 percent before the board meeting where the proposal for the stock split was to be taken up.
The company clocked in a revenue of Rs 525.75 crore in the September quarter, reflecting a nearly 4 percent decline from Rs 545.30 crore in the same period of the preceding fiscal. Quarterly net profit plunged 49.43 percent to Rs 19.15 crore, compared to Rs 37.87 crore a year ago.
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