Elder Pharma shares surged over 16 per cent on Thursday after it informed the exchanges that its board will meet next week to consider a proposal for sale of overseas subsidiaries.
"A meeting of company's board will be held on September 28 to consider the proposal for sale of step down overseas subsidiaries," Elder Pharma said in a filing to Bombay Stock Exchange on Wednesday.
Earlier on September 11, the pharma company in a clarification to the BSE had said that it is in the process of "restructuring as a whole and is in an advanced stage of discussions with prospective lenders."
Elder Pharma has not yet announced its results for the year ended June 30, 2015. The pharma company has earlier said that it is "presently facing severe financial crunch. In view thereof many of our senior employees including junior and subordinate staff have resigned from the Company. This has led to severe shortage of employees to handle the work of accounts and audit for the same and therefore audit has not completed within time."
Elder Pharma had a total debt of around Rs 600 crore as on June 2014.
Last year, Elder Pharma had sold its branded domestic formulations business in India and Nepal to Torrent Pharmaceuticals for Rs 2,004 crore.
Elder Pharma shares closed 12.26 per cent higher at Rs 113.55 apiece outperforming the broader Nifty, which ended 0.29 per cent up. The stock has underperformed its industry benchmark CNX Pharma in last one year by falling over 40 per cent compared to a gain of 24 per cent in CNX Pharma index.
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