Shares of Elder Pharmaceuticals today surged over 16 per cent as the board is scheduled to meet next week to consider the sale of its overseas subsidiaries.
The stock soared 16.41 per cent to Rs 117.40 on BSE. On the NSE, the stock jumped 16.31 per cent to Rs 117.65.
A meeting of the company’s board will be held on September 28 to consider the proposal for sale of step-down overseas subsidiaries, Elder Pharma had said in a regulatory filing yesterday.
Facing a severe financial crunch, the company is in the process of restructuring as a whole and is in an advanced stage of discussions with prospective lenders.
Last year, the company had completed the transaction for sale and transfer of its branded domestic formulation business in India and Nepal to Torrent Pharmaceuticals on a slump sale basis.