AMI Organics Stock Split News: AMI Organics Ltd, a prominent Indian manufacturer of specialty chemicals and pharmaceutical intermediates, has announced a stock split as part of its capital restructuring strategy. This corporate action, approved by the company’s Board of Directors on February 21, 2025, aims to enhance share liquidity and make the stock more accessible to retail investors.
Details of the Stock Split: AMI Organics Stock Split Record Date:
The company plans to split each existing equity share with a face value of ₹10 into two equity shares with a face value of ₹5 each. This 1:2 stock split is subject to shareholder approval through a postal ballot and any necessary regulatory clearances. The record date for the stock split has been decided as 25th April 2025.
Rationale Behind the AMI Organics Stock Split Action:
The primary objective of the stock split is to increase the liquidity of Ami Organics’ shares in the stock market. By reducing the face value of each share, the company aims to lower the trading price, thereby making the shares more affordable for a broader base of investors, particularly retail participants. This move is expected to encourage wider participation and potentially boost trading volumes.
Financial Performance and Market Response
AMI Organics has demonstrated strong financial performance, particularly in the third quarter of the fiscal year 2025. The company reported a 155% year-on-year increase in net profit, reaching ₹45.4 crore, and a 65% rise in revenue, totaling ₹275 crore. The EBITDA also saw a significant increase of 159%, amounting to ₹68.7 crore, with margins expanding to 25%.
In terms of stock performance, AMI Organics’ shares have more than doubled over the past year, delivering a return of approximately 106%. The stock reached a 52-week high of ₹2,644 and a low of ₹1,004.45. As of the latest trading session, the shares closed at ₹2,242.15 on the BSE.
Conclusion
The proposed stock split by AMI Organics Ltd is a strategic initiative aimed at enhancing stock liquidity and attracting a wider investor base. Given the company’s robust financial health and strong market performance, this move is anticipated to further strengthen investor confidence and support the company’s growth trajectory.
Note: Investors are advised to consult financial experts before making investment decisions, as stock market investments are subject to market risks.
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