Som Distilleries Shares Rises as Production Boosted, Announces Stock Split

8 Apr 2024 , 02:07 PM

Som Distilleries Limited witnessed a 4.5% rise to ₹321 in morning trade on April 8 following the commencement of commercial production from its additional capacity at the Karnataka plant.

 The company expanded its capacity from 90 lakh cases to 140 lakh cases of beer per annum, aiming to address heightened demand from Karnataka and neighbouring states like Kerala and Pondicherry.

Som Distilleries achieved its highest-ever sales in a month since entering Karnataka nearly a decade ago, although specific figures were not disclosed. The board of directors approved a 1:1 stock split on April 2, indicating that one share would split into one share with a face value of ₹2.5.

This marks the second stock split for the company, having previously split its stock in 2012 from ₹10 to ₹5, a move commonly made when a company’s stock price sees significant appreciation.

“Som Distilleries announced that its Board has approved the subdivision of the company’s share capital. The proposal involves subdividing each Equity Share Capital, currently valued at Rs. 5/- each, into an equivalent number of equity shares with a face value of Rs. 2/- each. This subdivision, subject to necessary approvals including from shareholders in a general meeting, also necessitates an alteration in Clause V of the Memorandum of Association in accordance with the Companies Act, 2013, and relevant SEBI regulations,” stated Som Distilleries.

The stock’s performance over the past year indicates a 52-week high of ₹389.80 on October 5, 2023, and a low of ₹142.38 on April 10, 2023. Notably, the stock has exhibited impressive returns, with a gain of 359% over two years and a 92% increase in value over the past year.

At the time of reporting, the stock was trading at ₹318.80 on the NSE, reflecting a 3.78% increase from the previous close, with Som Distilleries shares rallying 20% in the last month.

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