IOL board approves stock split; stock gains ~5%

30 Dec 2024 , 03:12 PM

Shares of IOL Chemicals and Pharmaceuticals rose more than 5% on December 30 after the board approved a proposal for a five-for-one stock split. Shareholders will receive five shares for each share they already hold.

Following the announcement, investors held shares of the corporation in anticipation of being rewarded with more stock after the split. A stock split is a corporate operation in which a corporation divides its current shares into multiples to increase the stock’s liquidity. While the number of outstanding shares increases, the total value of the shares (market capitalisation) remains constant because the split does not affect the company’s overall worth.

This is also the first stock split in the company’s history. IOL Chemicals has yet to announce the record date for its stock split.

At around 1.23 PM, IOL was trading 2.83% higher at ₹421.50, against the previous close of ₹409.90 on NSE. The counter touched an intraday high and low of ₹431.95, and ₹415, respectively.

Last week, the company’s shares rose about 8% ahead of the board meeting where the stock split plan was to be discussed.

The company’s sales in the September quarter was ₹525.75 Crore, down nearly 4% from ₹545.30 Crore in the same time the previous year. Quarterly net profit fell 49.43% to ₹19.15 Crore, compared to ₹37.87 Crore a year ago.

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