Mumbai: Shares of Wockhardt Monday surged over 3% in morning trade on the Bombay Stock Exchange amid the pharma company selling its animal healthcare business to a French company.
Wockhardt opened firm on the exchange and rallied to a high of Rs147.90, up 3.86% over the previous close.
Wockhardt yesterday said it has entered into an agreement with France-based Vetoquinol to divest the Animal Health Division and the deal, according to sources, is estimated at Rs170-180 crore.
On the National Stock Exchange, the scrip gained 4.60% to touch a high of Rs149.
Reeling under the debt, this is the second sale of business by Wockhardt this month. Earlier, the company had sold its German subsidiary for an undisclosed sum.
The Animal Health Division had net sales of Rs77 crore for the year ended 31 December 2008. Shareholders of the company approved the divestment of the division through a postal ballot on 1 June.