Vivimed Labs inches up after CCI nod for divestment of part of speciality chemicals biz

Vivimed labs rose 0.61% to Rs 430.60 at 12:03 IST on BSE after the company said that the Competition Commission of India has granted its approval for divestment of certain products in its speciality chemicals business to Clariant Chemicals (India).

The announcement was made during market hours today, 24 December 2015.

Shares of Clariant Chemicals (India) were off 0.64% at Rs 746.15. The stock hit a high of Rs 767.45 and a low of Rs 735 so far during the day.

Meanwhile, the S&P BSE Sensex was down 12.20 points or 0.05% at 25,838.10.

On BSE, so far 73,000 shares of Vivimed Labs were traded in the counter as against average daily volume of 54,148 shares in the past one quarter.

The stock was volatile. The stock surged as much as 3.97% at the day's high of Rs 445 so far during the day. The stock rose 0.23% at the day's low of Rs 429 so far during the day. The stock had hit a record high of Rs 446 on 1 December 2015. The stock had hit a 52-week low of Rs 175 on 24 June 2015.

The stock had outperformed the market over the past one month till 23 December 2015, surging 17.32% compared with Sensex's 0.12% rise. The scrip had also outperformed the market in past one quarter, jumping 44.69% as against Sensex's 0.11% rise.

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

It may be recalled that Vivimed Labs had in September 2015 announced divestment of certain products within its speciality chemicals portfolio to Clariant Chemicals (India). The transaction was valued at an enterprise value Rs 380 crore at that time.

On consolidated basis, Vivimed Labs' net profit rose 45.5% to Rs 23.88 crore on 7.5% growth in net sales to Rs 337.03 crore in Q2 September 2015 over Q2 September 2014.

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

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