Aarti Drugs Surges 20% To Record High On Approving 3:1 Bonus Share Issue

On Thursday, shares of Aarti Drugs soared 19.9 percent to hit a new all-time high of Rs 2,892.40 after the company approved bonus share issue in 3:1 ratio.

The manufacturer of bulk drugs and chemicals had said on Monday that its board will be meeting this week to consider a proposal for issue of bonus shares.

"The Board of Directors at its Meeting held on August 20, 2020, has approved the issuance of fully paid up Bonus Share in the ratio of 3:1 i.e. 3 (Three) Bonus Equity Share of Rs 10 each for 1 (One) fully paid-up Equity Share of Rs 10 each," the company said in an exchange filing on Thursday.

The company will intimate the "Record Date" for determining eligible Shareholders entitled to receive Bonus Shares in due course, it added.

Aarti Drugs had reported an impressive performance for the June-quarter despite the pandemic. Its net profit for the April-June period rose 281 percent year-on-year to Rs 85.45 crore and sales were up 34 percent to Rs 544.67 crore from the same period a year ago.

The stock has had a stellar 2020, rising 388.6 percent year-to-date.