The Business Bytes
Mumbai, September 9, 2024 (TBB Bureau): Vaishali Pharma Ltd., a leading Mumbai-based pharmaceutical company, has announced a 1:1 bonus issue and a 1:5 stock split, a move aimed at rewarding existing shareholders, enhancing liquidity, and expanding its shareholder base. This decision, made during the board meeting held recently, is subject to necessary regulatory and shareholder approvals.
The board approved the issuance of one bonus share for every equity share held in the company as of the record date. Additionally, it sanctioned a stock split, subdividing one equity share with a face value of Rs. 10 into five equity shares with a face value of Rs. 2 each.
The board also explored the possibility of raising funds through equity shares, debentures, or other securities, including rights issues, private placements, qualified institutional placements (QIPs), and preferential issues.
Vaishali Pharma’s growth strategy extends beyond its home market. Recently, the company secured 19 new product registrations across Southern Africa, West Africa, the Gulf region, Latin America, and the ASEAN region, which are expected to contribute approximately Rs. 100 million to its annual revenue.
The company reported strong financial results for the first quarter of FY25, with sales rising by 34.7% to Rs. 18.08 crore compared to Rs. 13.42 crore in the same period last year. Net profit increased by 7.13% to Rs. 1.70 crore, up from Rs. 1.59 crore in the previous quarter ended June 2023.
Commenting on the recent developments, Atul Vasani, Chairman and Managing Director of Vaishali Pharma Ltd., stated, “We are proud to inform our stakeholders that the company is making significant strides in its long-term growth strategy, delivering excellent operational and financial results. The stock split and bonus share issue align with our vision to reward shareholders and earn their lasting trust and confidence. This move will enhance liquidity and expand our equity base.”
He further emphasized the company’s commitment to growth and innovation, aiming to become a prominent force in the evolving pharmaceutical sector.
Established in 1989, Vaishali Pharma Limited has built a reputation for its extensive portfolio, which includes APIs, formulations, surgical products, veterinary supplements, herbal items, nutraceuticals, and oncology products. With over 250 formulation brands marketed in multiple countries and a robust pipeline of around 250 dossiers, the company has established itself as one of the fastest-growing and most versatile players in the pharmaceutical industry.
The company recently launched its new brand “HealthE” for the local online market. The first product, “HealthE Biotin and Multivitamin Gummies,” is designed to enhance hair, skin, and overall health. These gummies combine the power of biotin, essential vitamins, and natural extracts to promote radiant skin, support hair growth, and boost overall vitality.
“Our venture into the nutraceutical segment, alongside our ongoing collaborations and alliances, is set to be a pivotal growth catalyst for the future,” added Vasani. “We remain focused on delivering value to our stakeholders and making significant contributions to global healthcare. Our dedication to innovation, commitment to high-quality standards, and strategic expansion through valuable partnerships have driven our success.”
Vaishali Pharma is poised to strengthen its presence both domestically and internationally, contributing substantially to the pharmaceutical landscape in India and beyond. As part of its growth strategy, the company plans to introduce more innovative health and wellness products, further cementing its role as a leader in the industry.
