Pondy Oxides & Chemicals Ltd Announces Key Corporate Developments

Pondy Oxides & Chemicals Ltd. (POCL), a leading manufacturer of lead and lead alloys, recently made several important announcements concerning its business, reflecting its growth plans and ongoing corporate actions.

Fundraising Through Qualified Institutional Placement (QIP)

On Monday, the company announced that its Board of Directors has approved a proposal to raise funds up to ₹250 crore through Qualified Institutional Placements (QIP). This fundraising will be executed in one or more tranches and is aimed at strengthening the company’s financial position and supporting its future growth initiatives. To manage the fundraising process, POCL has formed a dedicated committee, which includes Chairman and Managing Director Ashish Bansal, Director of Finance K. Kumaravel, and Chief Financial Officer B. Vijay. Shareholders’ approval for the QIP will be sought at an extraordinary general meeting (EGM) scheduled for October 25, 2024, which will be held virtually.

Stock Split to Improve Liquidity

In another major development, POCL has announced a 1:2 stock split. This means that every existing equity share with a face value of ₹10 will be split into two shares with a face value of ₹5 each. The record date for this stock split has been set for October 16, 2024. This move is aimed at improving the liquidity of the company’s shares and making them more affordable for investors. The decision was approved by the shareholders during the Annual General Meeting held on September 18, 2024.

Appointment of New Executive Director

Further, POCL has appointed R. S. Vaidhyanathan as the new Executive Director, effective from September 23, 2024. Vaidhyanathan brings over 30 years of experience in the metal manufacturing and scrap trading industry, with expertise spanning ferrous and non-ferrous metals. His career includes two decades of leadership as Director of Commercials at Indica Group Ltd. in the UAE, along with senior positions at companies like Sakthi Group and Indo-Gulf Metal Trading. His vast experience in procurement, sales, and business development is expected to significantly strengthen POCL’s leadership team.

Stock Performance and Market Reaction

Pondy Oxides & Chemicals has seen impressive stock market performance in recent times. Despite a minor dip of 0.18% on the day of the announcement, closing at ₹2,033.75 per share, the company’s shares have gained substantially over the past year. The stock has surged 310% year-to-date and delivered a remarkable 344% growth over the past year. Its 52-week high was ₹2,382.05, achieved on September 5, 2024, while its low was ₹393.00 in December 2023. Over the last three years, POCL’s stock has delivered an extraordinary return of 875%.

Dividend Announcement for FY 2023-24

POCL also recently confirmed a final dividend of ₹5 per share for the financial year 2023-24, with a record date of September 11, 2024. The dividend was proposed at the board meeting on May 28, 2024, and approved by shareholders at the Annual General Meeting held in September.

Conclusion

Pondy Oxides & Chemicals Ltd. is making strategic moves to ensure continued growth and shareholder value. The approval of fundraising through QIP, the stock split, and the addition of a seasoned executive to the leadership team are all steps that reflect the company’s focus on expansion and enhanced shareholder engagement. With strong financial performance and stock market gains, POCL is well-positioned for future growth in the metals sector.