Elder Pharma jumps on board's nod for business restructuring

The announcement was made after market hours on Thursday, 11 July 2013.

Meanwhile, the S&P BSE Sensex was up 166.36 points or 0.85% at 19,842.42.

On BSE, 1.06 lakh shares were traded in the counter as against average daily volume of 67,399 shares in the past one quarter.

The stock hit a high of Rs 377.90 and a low of Rs 361 so far during the day. The stock had hit a record high of Rs 474 on 5 December 2012. The stock had hit a 52-week low of Rs 202.15 on 14 May 2013.

The stock had outperformed the market over the past one month till 11 July 2013, gaining 4.64% compared with the Sensex's 2.78% rise. The scrip had also outperformed the market in past one quarter, jumping 11.2% as against Sensex's 6.12% gain.

The small-cap company has equity capital of Rs 20.54 crore. Face value per share is Rs 10.

Elder Pharmaceuticals said that its board of directors at a meeting held on Thursday, 11 July 2013, approved the proposal for carrying out restructuring of company's business with a view to reduce its debt. The proposed restructuring involves either raising of capital, hiving off of assets or other strategic options. The board has decided to appoint advisors for this purpose, Elder Pharma said.

Elder Pharmaceuticals' consolidated net profit rose 15.3% to Rs 20.99 crore on 6.6% decline in net sales to Rs 322.74 crore in Q4 March 2013 over Q4 March 2012.

Elder Pharmaceuticals is a Mumbai-based pharmaceutical manufacturing and marketing organization.

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