Shares of Pharmaceutical major Mankind Pharma Ltd hit a 52-week high of Rs 2,410 on 2 April after the company announced its plans to conduct a slump sale of its over-the-counter business to its wholly-owned subsidiary.

In its regulatory filing, the company said that the board of directors of the company had approved the slump sale of the over-the-counter business, including the authority to directors/ officers of the company to enter into the Business Transfer Agreement and other related documents to give effect to the transaction.

The filing added, “Subject to regulatory, statutory and other approvals, if any, the slump sale will be effective on or before 1 October, 2024 or such other date as may be mutually agreed between the parties.”

The board has also approved the incorporation of the subsidiary with the name Mankind Consumer Products Private Limited or any other name as approved by the Ministry of Corporate Affairs.

The proposed wholly-owned subsidiary will be incorporated in India and will trade and manufacture consumer healthcare products, predominantly over-the-counter drugs and products.

The revenue of the over-the-counter business for the fiscal year 2022-23 stood at Rs 704 crore, which is 8.7% of the parent company’s Rs 8,127 crore revenue.

The new wholly-owned subsidiary will have an initial paid-up capacity of Rs 5 crore with a further investment of up to Rs 250 crore in one or more tranches.

At 3:30 pm, the shares of Mankind Pharma closed 3.92% higher at Rs 2,402.50 on NSE.