Shilpa Medicare share price was locked in five percent upper circuit on February 25 after the board approved the sale of its biological unit.
The stock touched a fresh 52-week high of Rs 515.20, up Rs 24.50, or 4.99 percent, on the BSE. There were pending buy orders of 4,212 shares, with no sellers available at 1138 hours.
The company’s board of directors on February 24 approved the sale of biological unit by way of slump sale to Shilpa Biologicals Private Limited, a wholly owned subsidiary.
The sale is subject to the approval of shareholders and is expected to be completed on or before March 31, 2020.
"The biological unit proposed to be sold is under construction/installation stage and not yet commenced commercial operations. Net worth is being worked out based on fair market value from an independent valuer. Further, net worth of the proposed unit is estimated to be around 22-24 percent (Rs 321.77 crore approximately) on standalone financials basis," the company said.
The sale, Shilpa Medicare said, would result in operational synergies and overall cost optimisation.
"The sale facilitates to create a biological business with a separate focused management that would provide greater flexibility in pursuing long-term growth plans and strategies; and helps the management to efficiently exploit opportunities for biological business independently," it said.