Mumbai, Oct. 12: Sun Pharmaceutical today said its board would consider a stock-split and a buyback in an attempt to shore up flagging investor confidence in its share.
The announcement sent the scrip soaring to Rs 558.25 on BSE, a rise of Rs 16, or 3 per cent, over its previous finish. It had opened at Rs 549 before peaking at Rs 565.
In a notice sent to exchanges today, the Dilip Shanghvi-led firm said proposals to divide its Rs 10 stock into two equity shares of Rs 5 each, and launch a buyback, will be taken up at the October 28 board meeting. No details about the plan have been given away.
Analysts say a split will help boost liquidity in the stock, apart from making it attractive to retail investors.