Elder Pharmaceuticals shares surged as much as 16.41 per cent intra-day on Thursday after the company informed BSE that it is mulling options to sell its overseas subsidiaries. At 10.04 am, the scrip was trading 13 per cent up at Rs 113.90.
The share price of the company closed 12.39 per cent up at Rs 113.35 on Thursday.
A meeting of company’s board will be held on September 28 to consider the proposal for sale of step down overseas subsidiaries.
The company is in the process of restructuring as a whole as it is facing a severe financial crunch. It is also in an advanced stage of discussions with prospective lenders. In a BSE filing on September 5, Elder Pharmaceuticals said, “The company is presently facing severe financial crunch. In view thereof many of our senior employees including junior and subordinate staff have resigned from the company.”
The company has been following financial year ending on June 30. For the financial year ended June 2014, Elder Pharma posted net profit of Rs 2.73 crore, down 96.69 per cent, against Rs 82.39 crore in the corresponding quarter a year ago.