2:1 Stock Split: Gujarat Based-Penny Stock Under Rs 2 Hit Back Toi Back Upper Circuits; Here’s Why

The stock is trading at 0.48 times its book value and the stock is up by 30 per cent from its 52-week low of Rs 1.04 per share.

On Monday, shares of Murae Organisor Limited (Formerly known as Earum Pharmaceuticals Limited) hit a 5 per cent upper circuit to Rs 1.35 per share from its previous closing of Rs 1.58 per share. The stock’s 52-week high is Rs 2.73 per share and its 52-week low is Rs 1.04 per share. In the recent trading sessions, the stock has been hitting back-to-back upper circuits.

Murae Organisor Limited has announced its Board of Directors' approval to explore the acquisition of agricultural land in Kutch, Gujarat, for agricultural and industrial expansion. The primary intended use of the land is the cultivation of high-quality pomegranates, leveraging the favourable agro-climatic conditions of the region. Furthermore, the company plans to establish a distillery facility on the same site to enhance operational efficiency and enter value-added segments, potentially diversifying and strengthening its revenue streams. The estimated investment for this strategic initiative is projected to be between Rs 200 million and Rs 250 million.

This proposed venture aligns strategically with government initiatives such as the "National Horticulture Mission," "Pradhan Mantri Krishi Sinchai Yojana (PMKSY)," and the "Gujarat Industrial Policy 2020," which support agricultural and industrial growth through various incentives. The final decision regarding this acquisition and the subsequent investment is contingent upon the successful completion of due diligence, favourable feasibility reports, and the receipt of all necessary regulatory and statutory clearances. Murae Organisor Limited has assured that it will promptly inform the stock exchange and its stakeholders of any significant developments in this matter.

Additionally, the Board of Directors approved a 1:2 stock split, subject to shareholder approval, where each equity share with a face value of Rs 2 will be subdivided into two equity shares with a face value of Rs 1 each, to enhance the liquidity of the company's shares and make them more accessible to retail investors; the pre-split subscribed and paid-up share capital of Rs 1,85,89,64,310 divided into 9,29,48,21,55 shares of Rs 2 each will become Rs 1,85,89,64,310 divided into 1,85,89,64,310 shares of Rs 1 each, and the company anticipates the completion of this process within approximately two months for the existing class of equity shares.

Murae Organisor Ltd., incorporated in 2012, operates within the pharmaceutical industry, focusing on the marketing, trading, and distribution of a diverse range of pharmaceutical formulations. The company markets over 120 products under its brand names, such as HYGNEX+, Erolon, and Calcybar, while outsourcing its manufacturing to third-party facilities. In addition to their branded products, Murae also trades in active pharmaceutical ingredients. Their product portfolio spans various therapeutic categories, including antibiotics, antimalarials, antihistamines, analgesics, dermatology products, neurological drugs, gastrointestinal drugs, and various supplements like calcium and multivitamins. Murae maintains an international presence, exporting to more than 15 countries across North America, CIS, Latin America, Africa, and Southeast Asia, with over 60 international products currently under registration.

The company has a market cap of Rs 125.5 crore and its 100 per cent stake is owned by public shareholders. The stock is trading at 0.48 times its book value and the stock is up by 30 per cent from its 52-week low of Rs 1.04 per share.

Disclaimer: The article is for informational purposes only and not investment advice.