Orchid Chemicals & Pharmaceuticals scrip today surged over 5 per cent after the company said it will sell various assets including active pharmaceutical ingredients business and one R&D facility to the US-based Hospira Inc for $200 million (nearly Rs 1,112 crore).
Bucking a weak stock market, shares of the company started the trade on a strong note and further gained 5.41 per cent to Rs 117.80 on the BSE.
At the NSE, the stock climbed 5.36 per cent to Rs 117.80.
In terms of volume, 7.34 lakh shares of the company changed hands on the BSE, while more than 26 lakh shares were traded on the NSE.
The firm’s business transfer agreement with Hospira includes sale and transfer of Aurangabad API facility, an associated Chennai based-R&D facility and Penicillin and Penem API business.
“The proceeds from this business transfer will be utilised for de-leveraging Orchid’s debt position and also pave the entry for the company’s foray into newer product verticals,” Orchid Chemicals had said in a statement yesterday.
The BSE benchmark Sensex was trading at 17,392.02, down 98.79 points at 1030 hrs.