Jubilant Life Sciences rose 2.18% to Rs 84.50 at 9:45 IST on BSE after the company's board approved a proposal to transfer its active pharmaceutical ingredient and dosage form business to its Singapore-based subsidiary.
The announcement was made after market hours on Friday, 4 October 2013.
Meanwhile, the BSE Sensex was down 186.22 points, or 0.94%, to 19,729.73
On BSE, 23,000 shares were traded in the counter compared with average volume of 1.31 lakh shares in the past one quarter.
The stock hit a high of Rs 87.40 and a low of Rs 83.05 so far during the day. The stock hit a 52-week high of Rs 248.25 on 10 December 2012. The stock hit a 52-week low of Rs 65.10 on 28 August 2013.
The stock had outperformed the market over the past one month till 4 October 2013, rising 20.73% compared with the Sensex's 7.26% rise. The scrip had, however, underperformed the market in past one quarter, falling 33.14% as against Sensex's 2.60% rise.
The small-cap company has an equity capital of Rs 15.93 crore. Face value per share is Re 1.
Jubilant Life Sciences (JLL) said that its board has approved to transfer the active pharmaceutical ingredient (API), dosage form businesses of the company by way of a slump sale on a going concern basis and to transfer the shares held by JLL in Jubilant Pharma Holding Inc, USA and Jubilant Pharnma N. V., Belgium to a wholly-owned subsidiary of Jubilant Pharma, Singapore (which is a wholly-owned subsidiary of the company) for a total consideration of Rs 1145.10 crore, subject to the approval of the shareholders of the company and such other approvals and permissions as may be deemed necessary.
In this regard, Jubilant Pharma, Singapore has received approval from the Foreign Investment Promotion Board (FIPB), JLL said in a statement.
JLL said that this will enable the company to consolidate its API, solid dosage form, radiopharma, allergenic extracts, sterile injectibles and ointment, cream and liquid businesses (pharma business) under Jublilant Pharma, Singapore and to explore, identify and implement the options and opportunities of raising money including by way of listing the pharma business for its growth and reduction of overall consolidated debt of the company, JLL said.
On a consolidated basis, Jubilant Life Sciences reported a net loss of Rs 52.62 crore in Q1 June 2013 compared with a net profit of Rs 5.01 crore in Q1 June 2012. Net sales rose 7.2% to Rs 1324.68 crore in Q1 June 2013 over Q1 June 2012.
Jubilant Life Sciences is a global pharmaceutical and life sciences company engaged in manufacture and supply of APIs, generics, specialty pharmaceuticals and life science ingredients. It also provides services in contract manufacturing and drug discovery and development.
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