Torrent Pharma recommends bonus issue; stock surges

MUMBAI: Shares of Torrent Pharmaceuticals hit a new high in trade today after the company announced a bonus issue and recommended dividend last Thursday.

The company has proposed to issue bonus shares in the ratio of 1:1 (one bonus share for one share held). It has also recommended an additional dividend of Rs 7 per equity share of Rs 5 each in addition to the interim dividend of Rs 6 per equity share.

Also, commemorating four decades of its business operations, the company also recommended a special dividend of Rs 10 per equity share. Considering this, the total dividend for the year becomes Rs 23/- per equity share.

Consequent to the bonus issue, the total paid up share capital will be Rs 84.62 crore from the existing Rs 42.31 crore.

Meanwhile, Credit Suisse has downgraded the stock to ‘neutral’ as it doesn’t see further re-rating opportunity. The brokerage expects sales growth in Brazil to slow down and India sales growth to remain around industry average.

Credit Suisse has a target price of Rs 815 on the stock.

At 12:50 pm, the stock was at Rs 823, up 4.61 per cent, on the BSE. It touched a high of Rs 871.80 and a low of Rs 787 in trade today.