1:10 Stock Splits: Surya Roshni, And 3 Pharma Smallcap Stocks To Turn Ex-Split In Next Few Days

Four smallcap stocks will be in focus in the next few days as they will turn ex-split in the ratio of up to 1:10. Three of these stocks are pharma companies, and two of them have already touched new 1-year highs ahead of the stock split. These companies are Surya Roshni, Sigachi Industries, Gujarat Themis Biosyn, and Themis Medicare. These stocks have set their record date to determine eligible shareholders between October 3rd to October 10th. Markets will be closed on October 2nd due to the celebration of Gandhi Jayanti.

Typically, listed companies declare a stock split of already owned shares into much smaller shares. This is done to improve liquidity by breaking the shares into smaller sizes. The face value of the shares reduces in proportion to the split ratio, however, there is no impact on the company's share capital and reserves. Although the price value of a stock reduces in a stock split, it the number of shares held rises in the investors' portfolio of that specific stock.

Here are the key highlights of the four small-caps and their share split:

Surya Roshni:

Steel products manufacturer, Surya Roshni has fixed October 6th as the record date to determine eligible shareholders for the shares sub-division in the ratio of 2:1. This means that 1 equity share of Surya Roshni having a face value of Rs 10 each, will be sub-divided into two equity shares having a face value of Rs 5 each fully paid-up.

Last week, on Friday, Surya Roshni shares settled at Rs 981.95 apiece, up by 1.40% on BSE. The company had a market value of nearly Rs 5,343 crore.

Incorporated in 1973, Surya Roshni has grown by leaps and bounds to become one of the largest Steel Pipes and Lighting companies in India. With sales of Rs 7,997 crore in FY 2022-23, Surya Roshni is one of the largest conglomerates in India, with exports to over 50 countries around the world. The Surya and Prakash Surya brands stand for quality, innovation and the latest technology.

Year-to-date, Surya Roshni shares have rallied by over 90% on the BSE. In a year, the stock turned as multi-bagger with an upside of over 115% on the exchange.

Sigachi Industries:

This pharma company headquartered in Hyderabad, will be turning ex-split on October 9th for shares sub-division in the ratio of 1:10. It means that every single equity share of Sigachi having a face value of Rs 10 each will be sub-divided into ten equity shares face value of Re 1 each in investors demat accounts.

On September 29th, the stock settled at Rs 400.05 apiece, up by 1.7%. the stock was near its 52-week high of Rs 410 apiece. Its market cap is around Rs 1,230 crore.

Sigachi is the industry leader in the field of Pharma Excipients, Nutra and food ingredients. Sigachi was incorporated in the year 1989 and has rapidly established itself as one of the largest manufacturers of Microcrystalline Cellulose worldwide.

So far in 2023, the stock gained by nearly 47% on BSE. In a year, the stock is up by over 51.5%.

Gujarat Themis Biosyn:

Yet another smallcap into the pharma segment, Gujarat Themis is set to trade ex-split on October 10, which is also the company's record date to determine the eligibility of Shareholders for sub-division.

The company will split its shares in the ratio of 1:5 --- indicating -- one existing equity share having a face value of Rs 5 each to be sub-divided into 5 equity shares having a face value of Re 1 each fully paid-up.

Ahead of its ex-split, Gujarat Themis touched a new 52-week high of Rs 1,044 apiece on BSE during September 29th trading hours before ending at Rs 1,023.35 up by 0.5%. The company has a market value of Rs 1,487 crore.

Gujarat Themis was initially incorporated as a joint venture between GIIC and Chemosyn (P) in 1981, however, the company commenced its production in August 1985 by producing Erythromycin and Erythromycin salts and formulations. Later on, in 1991, the company was acquired y Pharmaceutical Business Group (India) Ltd. (PBG); a unique consortium of five competing drug Companies - Themis Medicare, Kopran, Anant & Co, Cadila Health Care (Zydus) and Lyka Labs.

It has entered into Technical and financial collaboration with Yuhan Corporation, South Korea. With Yuhan's know-how, GTBL became India's first Company to start commercial production of the Anti-tuberculosis drug Rifampicin.

Gujarat Themis' share price has advanced over 31% on BSE so far in 2023. In a year, the stock rallied nearly 65% on the exchange.

Themis Medicare:

Themis Medicare is another pharma stock to turn ex-split on October 10, for its sub-division in the ratio of 1:10.

As per the regulatory filing, the Company has fixed Tuesday, 10th October 2023 as the 'Record Date' to determine the eligibility of Shareholders for the purpose of sub-division/split of every one fully paid-up Equity share having face value Rs 10 each in the authorised share capital of the Company, into 10 fully paid-up Equity shares having face value of Rs 1 each.

Also, ahead of its stock split, Themis Medicare touched a new 52-week high of Rs 1,825 apiece on BSE during last week's Friday session. The stock settled at Rs 1809.85 apiece, up by 2.83% on the day with a market cap of nearly Rs 1,666 crore.

Mumbai-based Themis is well known for developing novel formulations and manufacturing APIs. Its area of focus is differentiated parenteral formulations and new drug delivery systems (NDDS) such as life-saving drugs like EMAL, relatively painless injections like ETOJET, etc.

The year 2023 has been positive for Themis Medicare's share price with an upside of over 30% YTD. While in a year, the stock zoomed nearly 83%.