Multibagger small-cap stock gains 2% despite market crash after board nod to 1:2 stock split

Stock split 2025: Shares of small-cap stock Ami Organics gained over 2% in intra-day trade on Monday, February 24, after the company's board approved a stock split in the ratio of 1:2.

The board of directors met on Friday, February 21, and considered and approved the... "sub-division/split of the existing 1 (one) equity share of the Company having face value of ₹10/- (Rupees Ten only) each fully paid- up, into 2 (Two) equity shares having face value of Rs. 5/- (Rupees Five only) each, fully paid- up, by alteration of Capital Clause of the Memorandum of Association of the Company, subject to approval of the shareholders by way of Postal Ballot and any regulatory/ statutory approvals, as may be required under applicable laws," the company said in an exchange filing.

This would be the first-ever stock split by Ami Organics, which the chemicals and pharma company is undertaking to enhance the liquidity of the equity shares of the company and to encourage wider participation of small investors by making equity shares of the company more affordable.

Under a stock split, the company issues new shares to existing shareholders in a set proportion, wherein the total value of the shares remains the same, only the number of shares increases.

Ami Organics further informed that the board will fix the record date for the said stock split after obtaining the approval of the shareholders.

Stock Price Trend

Despite a weak stock market trend, shares of Ami Organics gained 2% on Monday, rising to the day's high of ₹2287. At the same time, the BSE barometer Sensex was trading at 74,779, down 532 points or 0.71%.

Even on a longer time frame, the index has beaten the benchmark Sensex, rallying 11% in a month versus a 4% slide in the 30-pack index.

In the last one year, shares of Ami Organics have rallied 108%, delivering multiagger gains to investors. Meanwhile, they are up 73% and 8% on a six-month and three-month basis, respectively.

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