Vivimed Labs gallops after clarification

Vivimed Labs jumped 15.97% to Rs 264 on BSE after the company denied reports which indicated that negotiations are going on for sale of its speciality chemical businesses.

The announcement was made during trading hours today, 14 May 2014.

Meanwhile, the S&P BSE Sensex was down 54.80 points or 0.23% at 23,816.43

On BSE, 1.23 lakh shares were traded in the counter as against average daily volume of 9,635 shares in the past one quarter.

The stock hit a high of Rs 273.15 and low of Rs 226.40. The stock had hit a 52-week high of Rs 309.85 on 17 May 2013. The stock hit a 52-week low of Rs 96 on 1 August 2013.

The stock had underperformed the market over the past one month till 13 May 2014, rising 1.38% compared with 5.49% rise in the Sensex. The scrip, however, outperformed the market in past one quarter, gaining 30.20% as against Sensex's 18.21% rise.

The small-cap company has equity capital of Rs 16.20 crore. Face value per share is Rs 10.

Vivimed Labs derives majority of revenue from Speciality Chemical business.

Vivimed Labs has today, 14 May 2014 noted certain media reports related to potential strategic developments at the Specialty Chemicals business unit of the company. Vivimed clarified that such media reports are inaccurate and, have not been authorised by, or attributable to any statements made by or on behalf of the company.

In a press release, Vivimed said that the company remains committed to delivering strong growth and profitability across both of its business segments, Healthcare and Specialty Chemicals. Should there be any material strategic developments related to any of the company's businesses, as expected, Vivimed will ensure that it continues to follow standard disclosure practices. This includes formally informing the stock exchanges and simultaneous disclosure to the equity markets, Vivimed Labs said.

Meanwhile, with reference to the news items appearing in leading news channel dated 14 May 2014, titled, "'Vivimed Labs Likely to divest stake in Speciality Chemical Business", Vivimed Labs during market hours clarified that there are no such negotiations taking place. The company is not aware of any information that has not been announced to the Exchanges which could explain the aforesaid movement in the trading, Vivimed Labs said.

Vivimed Labs' consolidated net profit rose 12.2% to Rs 18.99 crore on 23.2% rise in net sales to Rs 335.27 crore in Q3 December 2013 over Q3 December 2012.

Vivimed Labs is a leading manufacturer and exporter of specialty chemicals mainly used in the personal-care and pharmaceutical industries.

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