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Elder Pharmaceuticals touches the roof on the buzz of its promoter plans of stake sell

11 Jun 2013 Evaluate

Elder Pharmaceuticals is currently locked at its upper circuit limit of Rs. 357.15, up by 17.00 points or 5.00% from its previous closing of Rs. 340.15 on the BSE.

The scrip opened at Rs. 350.00 and has touched a high and low of Rs. 357.15 and Rs. 347.70 respectively. So far 8443 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 474.00 on 05-Dec-2012 and a 52 week low of Rs. 202.15 on 14-May-2013.

Last one week high and low of the scrip stood at Rs. 363.80 and Rs. 297.95 respectively. The current market cap of the company is Rs. 733.48 crore.

The promoters holding in the company stood at 39.99% while Institutions and Non-Institutions held 23.01% and 37.00% respectively.

Elder Pharmaceuticals’ promoter is reportedly looking to sell stake in the company as the entity is struggling with mounting debts and rising competition in the pharmaceutical industry. The company has accumulated debt of Rs 1,300 crore after expanding operations through acquisitions.

The Mumbai-based pharmaceutical company has mandated multinational consultancy firm Ernst & Young (E&Y) and Japanese investment banking firm Nomura Securities to manage a formal process to find a buyer through a negotiated transaction.

Pharma multinationals such as Sanofi, Pfizer and GSK and some Japanese companies are understood to be among the players that have evinced an initial interest in buying stake in the company.

Peers
Company Name CMP
Sun Pharma Inds. 1675.20
Dr. Reddys Lab 1235.40
Cipla 1238.30
Zydus Lifesciences 942.55
Lupin 2324.25
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