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Fredun Pharmaceuticals board approves 2:1 bonus issue

by theadvisertimes.com
2 months ago
in Business
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Fredun Pharmaceuticals board approves 2:1 bonus issue
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Fredun Pharmaceuticals has announced a 2:1 bonus issue where the company will pay two fully paid-up equity shares of Rs 10 each for every 1 existing equity share of Rs 10 each, to the eligible shareholders and warrant holders as on the record date. The decision was made in a board meeting held on Monday, May 25 and the bonus issue payment will be subject to shareholders’ approval.

Through the bonus share, Fredun’s strategic intent is to reward shareholders for their sustained confidence and long-term commitment to the company’s growth vision. The move signals management’s confidence in the structural earnings growth and long-term scalability of the business with multiple high-growth engines firmly in place, the company’s filing to the exchanges said.

This includes branded generic exports to 52 countries, domestic Fredun Gx formulations, an integrated pet healthcare platform (Freossi, Wagr and One Pet Stop), nutraceuticals, and cosmeceuticals (Bird N Beauty) — the Company is well-positioned to sustain its growth trajectory.

The inauguration of its 5th GMP-certified manufacturing facility in April 2026 provides significant capacity headroom to support the next phase of scaling across all verticals.

This move not only aligns with the company’s consistent value creation philosophy but also reinforces its commitment to delivering long-term, inclusive wealth creation for shareholders.

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The smallcap pharma company is into pharmaceutical formulation manufacturing, diversified across generics, cosmeceuticals, nutraceuticals, mobility, and animal healthcare products.The Board of Directors, at its meeting held on May 25, 2026, wherein the audited financial results for Q4 and FY26 were approved, has recommended the issuance of bonus shares in the ratio of 2:1, i.e. In FY26, Fredun reported total revenues of Rs 639.12 crore, with an Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) of Rs 94.79 Cr along with a profit after tax (PAT) of Rs 33.21 crore.Commenting on the development, Managing Director Fredun Medhora said, “The recommendation of a 2:1 bonus issue reflects the strong momentum we have built and our confidence in sustaining this growth trajectory. With robust performance across revenue and profitability, and continued progress in diversifying into higher-value segments such as nutraceuticals, cosmeceuticals and pet healthcare, we are strengthening the quality and scalability of our business”. This bonus is a way of sharing our progress with shareholders while reinforcing our commitment to consistent, long-term value creation, he added.

(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)



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