Cipla rose 0.44% to Rs 638 at 10:35 IST on BSE after the company's board of directors approved the transfer of the consumer healthcare business to Cipla Health on a going concern basis.
The company made the announcement after market hours yesterday, 10 December 2015.
Meanwhile, the BSE Sensex was down 54.02 points, or 0.21%, to 25,198.30
On BSE, so far 21,013 shares were traded in the counter, compared with an average volume of 1.11 lakh shares in the past one quarter.
The stock was volatile. The stock rose as much as 1.22% at the day's high of Rs 643 so far during the day. The stock fell as much as 0.29% at the day's low of Rs 633.35 so far during the day. The stock hit a record high of Rs 752.45 on 10 March 2015. The stock hit a 52-week low of Rs 572 on 15 June 2015.
The stock had outperformed the market over the past one month till 10 December 2015, falling 0.88% compared with 1.91% decline in the Sensex. The scrip, however, underperformed the market in past one quarter, sliding 2.86% as against Sensex's 1.44% decline.
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The large-cap company has an equity capital of Rs 160.64 crore. Face value per share is Rs 2.
Cipla said that the board of directors of the company yesterday, 10 December 2015, approved the transfer of the consumer healthcare business of the company to Cipla Health on a going concern basis by way of a slump sale for a lumpsum consideration of Rs 16 crore. Cipla Health is a newly incorporated subsidiary of the company and was incorporated on 27 August 2015. It will focus its business activities in the consumer healthcare space, Cipla said. The transaction will enable Cipla to participate in the attractive and growing over-the-counter market, the company said. Pursuant to the board approval, the business transfer agreement is in the process of being finalised. The transaction is expected to be completed within the fourth quarter of the financial year ending 31 March 2016 (FY 2016), subject to the execution of the agreement and completion of certain conditions precedent, it added.
The consumer healthcare business to be transferred to Cipla Health includes the scope of the business as approved on 9 July 2015 along with certain additional business. The amount and percentage of the turnover contributed by the consumer healthcare business of Cipla for the financial year ended 31 March 2015 (FY 2015) was Rs 54.28 crore and about 0.48% respectively. The net worth of consumer healthcare business of the company as on 31 March 2015 was Rs 7.88 crore contributing 0.07% of the net worth of the company.
On a consolidated basis, Cipla's net profit rose 44.4% to Rs 431.24 crore on 27.8% rise in net sales to Rs 3361.73 crore in Q2 September 2015 over Q2 September 2014.
Cipla is a global pharmaceutical company. The company's portfolio includes over 1,500 products in various therapeutic categories with one quality standard globally.
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