Share price of this micro-cap pharmaceutical company rose by more than 2 percent following the approval of the Board of Directors for a stock split in the ratio 10:1.
Price movement
In Thursday’s trading session, the share price of Aayush Wellness Ltd. reached an intra-day high of Rs.298.65 per share gaining more than 2 percent from its previous close of Rs.292.45 apiece. The shares have delivered staggering returns of more than 1,055 percent in a year.
What is the news
Mumbai-based healthcare company Aayush Wellness Ltd. engaged in health and wellness services, has announced a 10:1 stock split, where each equity share with a face value of Rs.10 will be divided into 10 shares with a face value of Re.1 each. The Record Date for this split is Monday, August 5, 2024.
This split will not alter the company’s total authorized share capital but will increase the number of equity shares in circulation.
Rationale Behind the Stock Split
The primary objective behind this stock split is to enhance the liquidity of Aayush Wellness’ equity shares in the capital market and encourage the participation of small and retail investors by making the company’s shares more economical and accessible to a broader investor base.
Historically, stock splits have often been perceived positively by the market, as they can signal a company’s confidence in its future growth prospects. This perception can lead to increased investor interest and a positive impact on the share price following the split.
Recent Developments
Aayush Wellness Limited unveils Aayush Tobaccofree Herbal Pan Masala & Gutka, designed to transform the habits of India’s 27.49 crore Gutka and Pan Masala consumers. This affordable, tobacco-free, and non-addictive product maintains a familiar taste while promoting healthier choices.
The company has also launched an online portal to improve nationwide access to its products and services, ensuring high-quality health and wellness solutions reach even the most remote and underserved areas of India.
Financials
For the year ended March 2024, Aayush Wellness Ltd. reported revenue of Rs.0.6 crores, a sharp decline of nearly 92 percent from Rs.8.1 crores in the previous year.
Despite this drop in revenue, the company’s Profit After Tax (PAT) improved to Rs.0.57 crores in FY24, reversing a net loss of Rs.0.34 crores in FY23. Overall, the company’s financial stability remains inconsistent.
About the company
Aayush Wellness Ltd., formerly Aayush Food and Herbs Limited, is a leader in health and wellness. The company trades various rice types, including basmati and non-basmati, across India, the Gulf, and West Africa. It also produces and distributes herbal pan masala and offers advanced nutraceuticals, supplements, nutritious meals, and enrichment solutions.
Written by – Siddesh S Raskar
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