Mumbai-based pharmaceutical company, Vaishali Pharma Ltd (NSE: VAISHALI), has announced a significant move to reward shareholders and enhance market liquidity. At its recent board meeting on August 28, 2024, the company approved a 1:1 bonus issue, offering one additional equity share for every existing share held. The company also confirmed a stock split, sub-dividing each Rs. 10 face value equity share into five shares with a face value of Rs. 2, pending regulatory and shareholder approval.

This strategic move is designed to reward existing shareholders, increase liquidity, and attract new investors by expanding the shareholder base. Vaishali Pharma's commitment to shareholder value is further reflected in the board’s exploration of additional funding options, including equity shares, debentures, and other securities through various methods such as rights issues and private placements.

Strong Financial Performance and Global Expansion

Vaishali Pharma is poised for continued growth, having recently secured 19 registrations in key global markets, including Southern Africa, West Africa, the Gulf region, Latin America, and the ASEAN region. These new markets are expected to contribute an additional Rs. 100 million to the company’s annual revenue, underscoring its successful global expansion strategy.

The company’s Q1 FY25 financial results reflect its strong momentum, with sales surging by 34.7% to Rs. 18.08 crore, up from Rs. 13.42 crore in the same period last year. Net profits also rose 7.13%, reaching Rs. 1.70 crore compared to Rs. 1.59 crore in the previous quarter.

Chairman’s Vision: Innovation and Global Expansion

Mr. Atul Vasani, Chairman and Managing Director of Vaishali Pharma Ltd, expressed his optimism about the company’s growth trajectory. “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 shares reflect our commitment to rewarding our shareholders and gaining their continued trust. This move will not only boost liquidity but will also expand the company’s equity base.”

Mr. Vasani also highlighted the company’s strategic initiatives, including its recent venture into the nutraceutical products segment. “Our ongoing collaborations and alliances are poised to be pivotal growth catalysts. We remain dedicated to innovation, maintaining high-quality standards, and expanding our global footprint through valuable partnerships. Our unwavering focus is on delivering value to our stakeholders and enhancing healthcare worldwide.”

Looking Ahead

Vaishali Pharma’s mission to contribute to global healthcare through high-quality pharmaceutical products is well-aligned with its vision of becoming a recognized Indian multinational corporation (MNC) in the pharmaceutical and healthcare industry. With a robust portfolio of over 250 formulation brands marketed internationally and an active pipeline of 250 dossiers, the company is well-positioned for future growth and continued success in the evolving pharmaceutical landscape.