Shares of Ami Organics appeared to show a significant drop of nearly 50% in some trading platforms today, but this decline is merely technical as the smallcap pharmaceutical company’s stock traded ex-split. The company implemented a 1:2 stock split, with April 25, 2025, set as the record date according to exchange filings.
Understanding the Stock Split
The stock split means each share with a face value of Rs 10 has been divided into two shares with a face value of Rs 5 each. Consequently, the share price has been adjusted in the same ratio. Shareholders who held the stock in their demat accounts as of today’s record date will benefit from this corporate action, which was approved by shareholders on March 26, 2025.
Ami Organics opened at Rs 1,111.05 on Friday, representing a 49.5% decrease from Thursday’s closing price of Rs 2,200.90. This apparent decline is entirely attributable to the subdivision of equity shares rather than any fundamental issue with the company.
Market Performance Post-Split
Following the split, the stock demonstrated strong market confidence by climbing nearly 17% to Rs 1,119 during the trading session. Later, it stabilized around Rs 1,105, ending relatively flat compared to its opening price. The company’s market capitalization remains robust at approximately Rs 9,050 crore.
Some trading applications may still display the 50% drop due to technical adjustments still being processed amid today’s market volatility.
Corporate Developments
In addition to the stock split, Ami Organics recently announced plans to change its name to ‘Acutaas Chemicals Limited.’ An extraordinary general meeting (EGM) has been scheduled for May 10, 2025, to obtain shareholder approval for this rebranding initiative.
The company’s board of directors will meet on May 2, 2025, to review and approve audited financial statements for the fourth quarter and fiscal year ending March 31, 2025. They will also consider a dividend declaration for shareholders.
Trading Restrictions and Analyst Outlook
Currently, the stock operates under the ‘T+1’ settlement cycle, imposing 5% circuit filters for the next 10 trading sessions and prohibiting intraday trading.
JM Financial projects promising results for Ami Organics’ March 2025 quarter, with anticipated revenue of Rs 285 crore (up 26.7% year-over-year and 3.6% quarter-over-quarter). The brokerage maintains a ‘buy’ rating with a pre-split target price of Rs 2,605, forecasting strong EBITDA and net profit growth.
Investors should understand that the apparent 50% price drop reflects only the technical adjustment from the stock split rather than any deterioration in the company’s financial health or market position
