Pharma Stock To Consider Fundraising Via Issue of Securities, Convertible Instruments After 1:10 Stock Split

With a market valuation of Rs 1.23KCr, Sudarshan Pharma Industries Ltd.'s shares closed Monday at a 5% upper circuit limit of Rs 51.05 a share. The stock has gained 17.65% over the previous five days, and it has risen 13.44% year-to-date in 2025. The stock is under attention following a meeting of the Sudarshan Pharma Industries Limited Board of Directors on Friday, January 10, 2025, to discuss a proposal to raise funds to supplement the company's financial resources through the issuance of securities and convertible instruments, through any legal means the Board deems appropriate, subject to any necessary regulatory or statutory approvals.

"Further, pursuant to the provisions of the SEBI (Prthb|t|6n of Insider Trading) Regulations, 2015 and the Company's Code of Conduct for Prohibition of Insider Trading, the "Trading Window" for trading in securities of the Company has been closed for the Designated Persons and their immediate relatives from Monday, January 06, 2025 till the end of 48 hours after the conclusion of the aforesaid meeting of the Board and declaration of outcome thereof," said Sudarshan Pharma Industries in a stock exchange filing.

On December 18th of last month, the Board of Directors took into consideration and authorised the preferential allotment of 9 lakh convertible warrants, each worth Rs. 10/-, at a price of Rs. 169.83, totalling Rs. 15,28,47,000/-. The allottees have paid the company an advance payment of Rs. 3,82,11,750, which is 25% of the issue price per warrant.

On November 28, 2024, the company's Board of Directors approved the acquisition of 10,000 common shares of Singapore Dollar 1/- each of Sudarshan Pharma Industries Private Limited, a Singapore-incorporated company. This represents 100% of the company's paid-up share capital. Sudarshan Pharma Industries Private Limited, Singapore will become a fully-owned subsidiary of the company when the transaction is completed.

The company had earlier declared stock split in a 1:10 ratio for the purpose of which 23/11/2024 was the record date. The company's shareholders authorised the subdivision of equity shares on November 3, 2024, splitting the face value of equity shares from Rs. 10/-each to Re. 1/-each. This resulted in 10 equity shares of Re. 1/-each for the existing 1 equity share of Rs. 10/-each.

The company's net sales increased from Rs 4,613.3 million in FY23 to Rs 4,6354 million in FY24. Its net costs in FY24 were Rs 4,407.3 million, whereas those in FY23 were Rs 4,466.4 million. EBITDA climbed from Rs 146.9 million in FY23 to Rs 228.1 million in FY24, according to Sudarshan Pharma Industries. The company's net profit increased from Rs 70.4 million in FY23 to Rs 114.5 million in FY24.

Based in Mumbai, India, Sudarshan Pharma is a well-known pharmaceutical manufacturer and company. Geographically and therapeutically, the company's operations are diverse in the chemical sector with speciality chemicals and the pharmaceutical industry.