Midcap pharma stock falls on record date of bonus shares issue

Shares of Ajanta Pharma plunged about 2% to ₹1,197 apiece on the BSE in Thursday's trading session on the record date of its bonus shares issue. The pharma stock started trading ex-bonus on Wednesday, June 22.

The board approved the issue of bonus equity shares in the ratio of 1:2 on May 10, 2022 i.e., issuance in the proportion of 1 share of ₹2 each for every 2 shares of ₹2 each and fixed Thursday, June 23 as the record date for its bonus shares issue.

The company said that the bonus shares issue will be out of free reserves of the company as on 31st March, 2022. Bonus shares are fully paid additional shares issued by a company to its existing shareholders.

“We have informed that Board of Directors of the company had at their meeting held today, inter alia considered and approved issue of Bonus Equity Shares in the proportion of 1 (One) Equity Share of Rs. 2/- each for every 2 (Two) Equity Shares of Rs. 2/- each held, subject to the approval of shareholders," the company had informed in an exchange filing.

Meanwhile, Ajanta Pharma's revenue from operations for the fourth quarter (Q4FY22) came at ₹870 crore, up 15% as against ₹757 crore in the same quarter last year. Its net profit, however, slipped slightly to ₹151 crore from ₹159 crore year-on-year (YoY).

For the year ended March 31, 2022, the company posted a profit after tax of ₹713 crore from ₹654 crore in FY21 while its revenue from operations rose to ₹3,341 crore last fiscal as against ₹2,890 crore in 2020-21.

Established in 1973 and headquartered in Mumbai-India, Ajanta Pharma is a specialty pharmaceutical company engaged in development, manufacture and marketing of finished dosages in domestic and international markets. The pharma stock is down more than 7% in a year's period whereas it has fallen over 19% in 2022 (YTD) so far.