Shares of Som Distilleries Limited advanced 4.5 percent to Rs 321 in morning trade on April 8 after the company announced to have started commercial production from its additional capacity at its Karnataka plant.
"After the increase, our capacity stands at 140 lakh cases of beer per annum from 90 lakh installed earlier," the company said in a regulatory filing.
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The company said that this strategic initiative will cater to the increased demand from Karnataka as well as meet the requirements from the neighboring states like Kerala and Pondicherry.
The alcoholic beverage maker last week announced its highest-ever sales in a month since entering the state almost a decade ago. The company didn't disclose any figures but said that "achieving the highest-ever sales in a month since entering Karnataka is a remarkable feat".
In other news, the board of directors of the company approved a stock split on April 2, with a ratio of 1:1, meaning one share would split into one share with a face value of Rs 2.5.
This is not the first instance of a stock split for the company, as it previously split its stock in 2012 from Rs 10 to Rs 5. Stock splits are typically implemented when a company's stock price has significantly increased, potentially deterring new investors.
At 11:15am, the stock was trading at Rs 318, higher by 3.5 percent from the previous close on the NSE. The Som Distilleries share has rallied 20 percent in the last month.
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