The report states that Sanofi and GSK have put in non-binding bids and Novartis has signed a non-disclosure agreement to acquire the domestic formulations business of Elder Pharma.
Shares of Mumbai-based Elder Pharmaceuticals jumped 5 percent to hit the upper circuit limit of Rs 309.50 on NSE on Wednesday after a report in the Economic Times paper said global pharma majors like Sanofi Aventis , Novartis and GlaxoSmithKline were in the race to buy-out the debt ridden company's domestic formulations business.
While Sanofi and GSK have put in non-binding bids, Novartis has signed a non-disclosure agreement, the report said, adding that even a few private equity players planned to join the bidding process.
Earlier this month, the paper had reported that the whole company was up for sale and Elder had mandated Ernst & Young and Japanese investment bank Nomura to manage a formal process to find a buyer.
Alok Saxena, the company's MD had termed that earlier report as a "market rumour."
Elder Pharma has a debt of around Rs 1,300 crore. In FY13, the company reported a net profit of Rs 81 crore on revenue of Rs 1,457 crore. It paid Rs 107 crore in finance costs.
READ MORE ON Elder Pharmaceuticals, domestic formulations business, sale, Sanofi Aventis, Novartis, GSK, GlaxoSmithKline, debt
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