A leading pharmaceutical manufacturer has announced a strategic stock split decision, demonstrating its commitment to enhancing market accessibility. Shareholders can expect their existing shares to be divided into smaller units, making the stock more affordable and potentially improving trading liquidity in the market.
Share Price Movement
The share price of IOL Chemicals and Pharmaceuticals Limited reached an intraday high of 5.38 percent to Rs. 431.95 per share on Monday, an increase from its previous close of Rs. 409.90 per share. The market capitalisation now stands at approximately Rs. 2,492 crore as of December 30, 2024.
Share Price Surge: Why?
The company will split each Rs. 10 equity share into five Rs. 2 shares. This aims to split the shares in a ratio of 5:1 to make shares more affordable and boost investor participation and liquidity. The authorised capital remains Rs. 80 crore, with issued capital adjusting to 29.35 crore shares post-split, completing within two months.
Financial Highlights
According to its recent filing, in the quarter ending September 2024, IOL Chemicals and Pharmaceuticals’s consolidated revenue from operations has decreased by 3.48 percent YOY from Rs. 545 crore in Q2 FY24 to Rs. 526 crore in Q2 FY25 and increased by 4.78 percent QoQ from Rs. 502 crore in Q4 FY24.
The company’s consolidated net profit has declined by 50 percent, from Rs. 38 crore in Q2 FY24 to Rs. 19 crore in Q2 FY25. As compared to the last quarter of 2025, the company’s net profit has declined by 36.7 percent QoQ from Rs. 30 crore.
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Market Outlook
The global pharmaceutical market is expanding rapidly, projected to grow from USD 1,199.86 billion in 2023 to USD 2,092.95 billion by 2028, at a 13.4% CAGR. India’s pharmaceutical sector ranks third globally in volume and is advancing due to increased healthcare investments and R&D emphasis. Pharmaceutical exports reached USD 27.85 billion in FY 2024, driven by global demand. Meanwhile, India’s chemical industry is projected to grow from USD 220 billion in 2023 to USD 383 billion by 2030, supported by favourable policies and rising demand.
Shareholding Pattern
As of the September 2024 shareholding pattern, IOL Chemicals and Pharmaceuticals Limited is primarily held by the promoters at 48.19 percent, foreign institutional investors hold 1.63 percent, and the public with 50.11 percent.
About Company
IOL Chemicals and Pharmaceuticals Limited, based in Ludhiana, India, specializes in chemicals and pharmaceuticals. Founded in 1986, it provides products to industries such as pharmaceuticals, food processing, and textiles. The Chemical segment offers products like Ethyl Acetate, Para Amino Phenol (PAP), and Iso Butyl Benzene.
The Pharmaceutical division excels in Active Pharmaceutical Ingredients (APIs) such as Ibuprofen, where it holds a 35% global market share. The company is renowned for its quality, innovation, and sustainability, with certifications from USFDA and WHO-GMP affirming its commitment.
Written By Fazal Ul Vahab C H
Disclaimer
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