Parenteral Drugs sells its arm's Goa unit, stock falls 9%

Parenteral Drugs (India) dropped nearly 18 percent from day's high on Friday after the company sold its subsidiary's Goa unit to Fresenius Kabi.

The stock was locked at 10 percent upper circuit on Thursday and today also it was up 10 percent in initial trade, but since the news of sale of unit in morning, it witnessed selling pressure.

In a release sent to exchanges, Parenteral Drugs India said one of its subsidiary Goa Formulations has executed an agreement with Fresenius Kabi India Private Limited (a fully owned subsidiary of Fresenius Kabi AG) to sell its only pharmaceutical manufacturing unit at Goa at a consideration of Rs 200 crore.

The agreement has become binding on the parties, the company said.

The stock of Parenteral Drugs fell 7.08 percent to close at Rs 110.30 on Bombay Stock Exchange. It, however, touched a 52-week high of Rs 130.55 in initial trade.

Trading volumes increased more than 11 times to 60,096 equity shares as against five-day average of 5,297 shares.

Market capitalisation of the company currently stands at Rs 285.31 crore.