Ajanta Pharma fixes record date for stock split; hits record high

The stock rallied 7% to Rs 3,235, also its record high on the National Stock Exchange.

Ajanta Pharma has rallied 7% to Rs 3,235, also its record high  on the National Stock Exchange (NSE), after the company said it has fixed record date as March 23, 2015 for the purpose of sub-division of equity shares from face-value of Rs 5 each to face-value of Rs 2 each. The stock will turn ex-stock split on March 20, 2015.

The stock opened at Rs 3,097 and touched a low of Rs 3,047 on NSE. Till 1221 hours, a combined 107,884 shares changed hands as against an average sub 50,000 shares that were traded daily in past two weeks on NSE and BSE.

A stock split, or sub-division of equity shares, is done to infuse liquidity and to make shares affordable for retail investors who could not invest earlier because of the high stock price.

In past one year, the stock has zoomed 223% from Rs 998 compared with 34% rise in CNX Nifty.

Earlier, in August 2012, the pharmaceutical company had sub-divided face value of its equity shares to Rs 5 from Rs 10. Since then, the stock has appreciated by more than 10-fold from Rs 251 (adjusted to stock split and bonus shares) against 64% surge in benchmark index.