Multibagger Pharma Company Recommends 1:1 Bonus Issue and 1:5 Stock Split; Expects to Continue its Strong Growth Momentum with Innovation
In July 2024, the promoters of the company bought 13,02,000 shares and increased their stake to 31.61 per cent compared to 26.32 per cent in June 2024.
The board of directors of Mumbai-based Vaishali Pharma Ltd (NSE – VAISHALI) has recommended the issue of bonus equity shares in the ratio of 1:1 (1 bonus share equity for every 1 equity share held in the company as on the record date) in the meeting held on August 28, 2024, along with stock split, subject to necessary regulatory and shareholders’ approvals. The company approved a sub-division of 1 equity share of Rs. 10 face value into five equity shares of Rs. 2 face value each. The bonus issue is aimed at rewarding existing shareholders, enhancing liquidity and expanding the shareholder base.
The board also considered proposals for raising funds by way of equity shares, debentures or other securities through rights issues, private placement, qualified institutions placement (QIP), preferential issue or any other method. Catering to semi-regulated and non-regulated markets across the world, the company had recently obtained 19 registrations across Southern Africa, West Africa, the Gulf region, Latin America and the ASEAN region. These registrations are poised to contribute around Rs. 100 million to the company’s annual revenue.
Backed by a strong product portfolio and distribution network, the Company reported robust financial performance for Q1FY25. For the quarter ended on June 30, 2024, the company’s sales increased by 34.70 per cent to Rs 18.08 crore in Q1FY25 compared to Rs 13.42 crore during Q1FY24. Net Profit of the company rose 7.13 per cent to Rs 1.70 crore as against Rs 1.59 crore during the previous quarter ended June 2023.
Established in 1989, Vaishali Pharma Limited specializes in the production and marketing of a diverse range of pharmaceutical products, including APIs, formulations, surgical products, veterinary supplements, herbal items, nutraceuticals, and oncology products. Their portfolio serves both human and animal healthcare needs. The company has over 250 + formulation brands marketed in multiple countries and a robust pipeline of around 250 Dossiers. The company’s synergistic collaboration with WHO-GMP manufacturing facilities is backed by an excellent rapport with clients. The company is one of the fastest-growing and most versatile company in the pharmaceutical industry. It has a strong presence in both the domestic and export markets and is currently supplying to all leading Indian and international companies.
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As an emerging force, Vaishali Pharma is poised to contribute substantially to the pharmaceutical landscape in India. The company recently announced the launch of its new brand “HealthE” for the local online market. The first product in this lineup is HealthE Biotin and Multivitamin Gummies is a revolutionary product designed to enhance hair, skin, and overall health. These delectable gummies combine the power of biotin, essential vitamins, and natural extracts to support hair growth, promote radiant skin, and boost overall vitality. All the products launched are backed by food scientist. This exciting development is a testament to the company's ongoing commitment to delivering health and wellness solutions that improve lives and promote lasting well-being. The company plans to add many more products in the near future.
On Friday, shares of Vaishali Pharma Ltd plunged 3.80 per cent to Rs 187.25 per share from its previous closing of Rs 194.64 per share. The stock’s 52-week high is Rs 203.60 and its 52-week low is Rs 118.15.
The company has a market cap of over Rs 200 crore. In July 2024, the promoters of the company bought 13,02,000 shares and increased their stake to 31.61 per cent compared to 26.32 per cent in June 2024. From Rs 38.05 to Rs 187.25 per share, the stock gave multibagger returns of 393 per cent in 3 years. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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