In Thursday’s session, the share price of a company engaged in the supply of pharmaceutical products moved up by 6.6 percent on NSE to Rs. 202.4, after the Board of the company approved a 1:1 bonus share as well as a 1:5 stock split to its eligible shareholders.
With a market cap of Rs. 216.5 crores, at 11:48 a.m., the shares of Vaishali Pharma Limited were trading in the green at Rs. 197.62, up by 4.1 percent, compared to its previous closing price of Rs. 189.84.
What’s the news:
According to the latest regulatory filings with the NSE, the Board of Directors of Vaishali Pharma Limited has recommended the issue of bonus equity shares in a 1:1 ratio, which means that the shareholders receive 1 bonus share equity for every 1 equity share held in the company.
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The bonus issue is aimed at rewarding existing shareholders, enhancing liquidity, and expanding the shareholder base.
Further, the Board also approved the sub-division/stock split in a 1:5 ratio, where 1 equity share of Rs. 10 face value will be divided into 5 equity shares of Rs. 2 face value each.
Additional News:
The company’s Board considered the proposal of fundraising by way of equity shares, debentures or other securities through rights issues, private placement, qualified institutions placement (QIP), preferential issue or any other method.
Further, catering to semi-regulated and non-regulated markets across the world, the company has recently obtained 19 registrations across Southern Africa, West Africa, the Gulf region, Latin America and the ASEAN region.
These registrations are expected to contribute around Rs. 100 million to the annual revenue of Vaishali Pharma.
Financial:
The company experienced significant growth in its revenue from operations, showing a year-on-year rise of around 35 percent from Rs. 13.4 crores in Q1 FY23-24 to Rs. 18.08 crores in Q1 FY24-25.
Similarly, its net profit increased marginally during the same period from Rs. 1.6 crores to Rs. 1.7 crores, indicating a rise of nearly 6.3 percent YoY.
In terms of return ratios, Vaishali Pharma has reported a return on equity (ROE) of 1.73 percent, and a return on capital employed (ROCE) of 4.77 percent.
Stock Performance:
The shares of Vaishali Pharma have delivered positive returns of nearly 59 percent in one year and around 37.6 percent in the last six months. So far in 2024, it has given about 8.2 percent of positive returns.
About the company:
Established in 1989, Vaishali Pharma Limited is primarily engaged in the marketing of a wide range of pharmaceutical products including active pharmaceutical ingredients (APIs), formulations, surgical products, veterinary supplements, herbal items, nutraceuticals, and oncology products. Its portfolio serves both human and animal healthcare needs.
Vaishali Pharma was listed on 22nd August 2017 in NSE – Emerge (SME) and later migrated to the Mainboard of the National Stock Exchange (NSE) on 15th January 2020.
Written by Shivani Singh
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