Morepen Labs to transfer medical devices business to subsidiary via slump sale
New Delhi: Shares of Morepen Laboratories jumped over 8 per cent on Thursday after the company said its board has approved transfer of its medical devices business on a slump sale basis to a wholly-owned subsidiary.
The stock zoomed 8.28 per cent to close at Rs 55.60 on the BSE. During the day, it jumped 10.90 per cent to Rs 56.95.
On the NSE, it rose by 8.38 per cent to close at Rs 55.60.
In traded volume terms, 6.72 lakh shares were traded at the BSE and over 49 lakh shares at the NSE during the day.
"Morepen Labs gains 8 per cent on transfer of medical devices business to a subsidiary," said Mohit Nigam, Head - PMS, Hem Securities.
The company's board has approved the transfer of the medical devices business for a lump sum consideration by way of allotment of equity shares of Rs 10 each, to the subsidiary, Morepen Labs said on Thursday.
The revenues and profits derived from the new subsidiary will be consolidated in the parent company, it added.
"Business Transfer Agreement with wholly-owned subsidiary, under processes of incorporation, will be signed after receipt of shareholders'' approval," the company said.
Transfer of the medical devices business into wholly-owned subsidiary is expected to be completed on or before March 31, 2022, it added.