10:1 stock split: Multibagger stock under Rs 50; Company allots 90,00,000 equity shares to promoters on conversation of warrants

The stock gave multibagger returns of 581 per cent from its 52-week low of Rs 5.82 per share.

On Thursday, shares of Sudarshan Pharma Industries Ltd plunged 2 per cent to Rs 39.62 per share from its previous closing of Rs 40.42 per share. The stock’s 52-week high is Rs 46 per share while its 52-week low is Rs 5.82 per share.

The Board of Directors of the Company, in its meeting held on December 18, 2024, approved the allotment of 9,00,000 convertible warrants to promoter category individuals: Mr Hemal V. Mehta and Mr Sachin V. Mehta. Each warrant, priced at Rs 169.83, is convertible into 10 equity shares of Re 1 each. The total issue size amounts to Rss 15,28,47,000, with an upfront payment of 25 per cent received from the allottees.

Due to the recent sub-division of equity shares from Rs 10 to Re 1, the conversion ratio of the warrants has been adjusted accordingly. The 9,00,000 warrants previously convertible into 9,00,000 equity shares of Rs. 10 each will now be convertible into 90,00,000 equity shares of Re. 1 each.

On November 22, 2023, the shares of the company ex-traded sub-division /stock split of the company’s 1 (one) equity share having a face value of R 10 each fully paid-up, into 10 equity shares of the company having a face value of Re 1 each fully paid-up.

Additionally, the company intends to acquire 100 per cent of Sudarshan Pharma Industries Private Limited, a Singapore-based company engaged in the wholesale trade of various goods, including industrial chemicals. This acquisition, valued at SGD 10,000, is aimed at expanding the company's operations in Singapore and neighbouring regions. As the target entity is a wholly-owned subsidiary of Mr Amar Ashok Vyas, the acquisition does not fall under related party transactions. No significant regulatory approvals are required, and the consideration will be paid in cash.

Furthermore, the company successfully acquired a majority stake in Ishwari Healthcare Private Limited, acquiring 2,09,100 equity shares, which constitutes 51% of the company's total paid-up equity share capital. This acquisition has resulted in Ishwari Healthcare becoming a subsidiary of the company. Ishwari Healthcare, a private limited company, is primarily involved in the manufacturing, processing, and distribution of a wide range of medical and surgical instruments, equipment, and devices. Their operations encompass various aspects of the healthcare industry, including research, development, manufacturing, marketing, and distribution.

Sudarshan Pharma Industries Limited (SPIL), established in 2008 and headquartered in Mumbai, is a prominent contract manufacturer of generic formulations. Operating across diverse segments, including speciality chemicals, intermediates, APIs, pharmaceutical and formulation generics, and bulk supply, SPIL caters to a wide range of institutions and healthcare organizations. Beyond its contract manufacturing services, SPIL has ventured into branded products through its Vimac Healthcare division. A significant portion of its product portfolio, consisting of 56 out of 96 items, is registered under the "R" trademark. Furthermore, SPIL collaborates with renowned Indian companies and institutional clients, offering contract manufacturing services for pharmaceutical formulations and medicines.

The company has a market cap of Rs 954 crore and has delivered good profit growth of 37 per cent CAGR over the last 5 years. The stock gave multibagger returns of 581 per cent from its 52-week low of Rs 5.82 per share. Investors should keep an eye on this micro-cap stock.

Disclaimer: The article is for informational purposes only and not investment advice.