Dishman Pharma rallies 3% on debt reduction plans

NEW DELHI: Dishman Pharma Ltd rallied as much as 3 per cent in morning trade on Monday on reports that the company is in talks to sell its 175 hectares of land in Gujarat to Nirma for about Rs 650 crore to cut its debt.

At 09:35 a.m.; Dishman Pharma was trading 2.1 per cent higher at Rs 97.15. It has hit a high of Rs 97.95 and a low of Rs 96.50 in trade today.

“The company is looking at selling the Gujarat land to reduce its over Rs 800 crore debt, sources said, adding that Dishman plans to pay off a bank debt of Rs 100 crore from proceeds of sale of its Shanghai facility,” said media reports.

“Dishman had in 2009 scrapped plans to set up an engineering Special Economic Zone (SEZ) due to global slowdown and merged it with the adjoining pharma SEZ in Bavla, near Ahmedabad,” said the reports.