Elder Pharma’s board approves restructuring to reduce Rs1,300 crore debt
12 Jul 2013
Elder Pharma has informed the Bombay Stock Exchange (BSE) that its board has approved a restructuring plan in order to reduce its huge debt of around Rs1,300 crore.
''The board with a view to reducing the debt of the company approved the proposal for carrying out restructuring of company's business involving either raising of capital, hiving off of assets or other strategic options and have decided to appoint advisors for this purpose,'' the Mumbai-based company said in a BSE filing on Thursday.
Separately, citing four people close to the transaction, The Economic Times today reported that Elder Pharma's sale of its domestic formulation business has attracted bids from French pharmaceutical giant Sanofi, US-based Pfizer and Britain's GlaxoSmithKline (GSK).
Sanofi has emerged as the highest bidder, ahead of Pfizer and Glaxo, the report said and added that Paris-based Sanofi has bid for all the brands, valuing the Mumbai-based company at Rs2,500-Rs2,700 crore, while other bidders like GSK have bid for specific brands.
Founded in 1989, Elder Pharma is ranked as the 27th largest pharmaceutical company and rated as the third fastest-growing company, by revenue, in the pharmaceutical industry in India.
The company manufactures and markets prescription pharmaceutical brands, surgical and medical devices. Shelcal Elder's No.1 brand is one of the top brands in the Indian Pharmaceutical industry.