Elder Pharma spurts on reports the company mulls selling assets to reduce debt

Elder Pharmaceuticals surged 17.14% to Rs 98.40 at 13:07 IST on BSE on media reports that the company is planning to sell its assets for debt reduction.

Meanwhile, the S&P BSE Sensex was up 47.72 points or 0.19% at 25,669.89.

On BSE, so far 1.67 lakh shares were traded in the counter as against average daily volume of 83,436 shares in the past one quarter.

The stock hit a high of Rs 99.70 and a low of Rs 86 so far during the day. The stock had hit a 52-week high of Rs 215.55 on 15 September 2014. The stock had hit a 52-week low of Rs 66.65 on 10 June 2015.

The stock had underperformed the market over the past one month till 10 September 2015, sliding 29.41% compared with Sensex's 8.82% fall. The scrip had, however, outperformed the market in past one quarter, surging 22.81% as against Sensex's 4.54% fall.

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

According to reports, Elder Pharmaceuticals may sell its factories in Maharashtra and Uttarakhand, as well as some real estate, to raise money and repay creditors. Elder Pharmaceuticals is presently facing severe financial crunch, reports suggested.

On consolidated basis, Elder Pharmaceuticals reported net loss of Rs 46.02 crore in Q3 March 2015, lower than net loss of Rs 73.63 crore in Q3 March 2014. Net sales declined 33.5% to Rs 151.30 crore in Q3 March 2015 over Q3 March 2014.

Elder Pharmaceuticals is an integrated pharmaceutical player, headquartered in Mumbai, with a strong presence in the domestic formulation business.

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