Elder Pharma surges over 12% on overseas units sale plan

Shares of Elder Pharmaceuticals today rose sharply by over 12 per cent as the board is scheduled to meet next week to consider sale of its overseas subsidiaries.
After surging 16.41 per cent to Rs 117.40 intra-day, shares of the company ended at Rs 113.35, a gain of 12.39 per cent on BSE.
At NSE, shares of Elder Pharma settled 12.25 per cent higher at Rs 113.55.
On the volume front, 3.85 lakh shares of the company changed hands at BSE and over 17 lakh shares were traded hands at NSE.
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 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.