The Hyderabad-based Aurobindo Pharma Ltd (APL) has decided to split its shares of Rs 10 each into two equity shares of Rs 5 each. The decision taken by the Board at its meeting on Saturday will be put before the shareholders for ratification at the Annual General Meeting (AGM) on September 12, the company has informed the BSE. The share price of APL closed at Rs 391 on the BSE on Friday.
APL has an equity capital base (paid up capital) of Rs 23.25 crore, with non-promoters holding 38.62 % stake in the company. Aurobindo Pharma posted a net profit of Rs 23.05 crore on a total income of Rs 311.51 crore in the first quarter of 2003-04. The company expects to further improve its bottomline when it declares the consolidated financial results for the year 2003-04. The company had restructured its manufacturing units to conform to international quality standards and commissioned its backward integration project in China recently. These measures to make the company a global player are expected to reflect on its results substantially.
The sub-division of the shares would enable more participation from retail investors and further improve the liquidity of the stock.