Cipla board clears 1:5 stock split

Drug major Cipla is joining the stock split bandwagon. The company has informed the Bombay stock Exchange (BSE) that it proposes to reduce the nominal value of its equity shares from Rs 10 to Rs 2.

The share split, according to the company, is with a view to make its equity shares more affordable to the retail investors. An extra-ordinary general meeting (EGM) of the company will be held on April 21 to consider the company's proposals.

The company, in its notice to the stock exchange, also said that it will issue and allot 1700 equity shares of Rs 10 each in the company credited as fully paid to the equity shareholders of Oncocare India, Medule Pharma, Medex Specialities, Lancet Pharma, Inhaled Technologies, and Nebumed Pharma. These companies own the buildings used by Cipla at its Goa facility.

Post the share split, they will be given 8,500shares carrying a face value ofRs 2.

"Cipla is acquiring the buildings owned by a group of companies through demerger," a senior company executive said.