Mumbai-based drug maker Elder Pharmaceuticals Ltd, which is facing a severe financial crunch, is looking to divest its overseas subsidiaries, according to stock market disclosure.
The board of directors will meet on September 28 to consider the proposal for the sale of of step down overseas subsidiaries, the disclosure said. It did not share details of the units and its implications for the company at large.
Earlier this month, Elder Pharmaceuticals had informed the stock exchanges that the company is in the process of restructuring as a whole and is also under “advance negotiation/discussions with prospective lenders who would be interested in this exercise for the company’s revival.”
The company however did not disclose names of the prospective lenders it is in talks with and said that no final formal agreement has been signed yet.
The company’s financial results for the quarter ended on June 30, 2015 has also been delayed. In the quarter ended on March 31, 2015, the pharmaceuticals firm registered a loss of Rs 46 crore on revenues of Rs 152 crore.
Last year, Elder Pharma sold its branded domestic formulation business in India and Nepal to Ahmedabad-based drug maker Torrent Pharmaceuticals Ltd for Rs 2,004 crore on a slump sale basis to pare a part of its debt.
Elder Pharma, which makes anti-infectives, multivitamins and cardiovascular medicines, is the flagship company of Elder Pharma Group, promoted by Saxena family led by Jagdish Saxena.
Earlier this month, media reports also said that the pharmaceuticals company was looking to divest its factories in Maharashtra and Uttarakhand, as well as some real estate, to garner funds and repay the creditors.
On Thursday, shares of Elder Pharmaceuticals last traded at Rs 113.35 each, down 12.39 per cent on BSE in a flat Mumbai market.