Dr. Reddy’s Laboratories shares turned ex-split today, resulting in a 2% increase to a day’s high of Rs 1328.90 on the BSE.
The stock split, announced in July, follows a 1:5 ratio, meaning that for each existing share with a face value of Rs 5, shareholders now have five shares with a face value of Re 1.
The company clarified that each American Depositary Share (ADS) will continue to represent one equity share.
Consequently, the number of ADSs held by American Depositary Receipt holders will increase in line with the rise in equity shares.
This marks the first stock split for Dr. Reddy’s in recent years, with the previous split occurring in October 2001, when the face value of shares changed from Rs 10 to Rs 5.
In its latest financial report, the Hyderabad-based pharma company noted a 0.8% year-on-year decline in profit after tax for the June quarter, totaling Rs 1,392 crore, while revenue increased by 13.9% to Rs 7,673 crore.
Over the past year, Dr. Reddy’s shares have risen 22.4%, with a 5.4% increase over the last six months.
However, the stock has experienced declines of 4.4% and 2.4% in the last three months and one month, respectively.