Meanwhile, the BSE Sensex was up 24.09 points, or 0.12%, to 20,917.98.

On BSE, 2.02 lakh shares were traded in the counter compared with average volume of 92,830 shares in the past one quarter.

The stock hit a high of Rs 160.50 so far during the day, which is also a 52-week high for the counter. The stock hit a low of Rs 154 so far during the day. The stock hit a 52-week low of Rs 88.65 on 24 July 2013.

The stock had outperformed the market over the past one month till 21 October 2013, rising 32.59% compared with the Sensex's 3.11% rise. The scrip had also outperformed the market in past one quarter, gaining 61.51% as against Sensex's 3.69% rise.

The small-cap company has an equity capital of Rs 26.59 crore. Face value per share is Rs 2.

The board of Radico Khaitan approved the transfer, sell, assignment, restructuring or otherwise disposal of the Indian made foreign liquor (IMFL) business of the company to a subsidiary of the company on such terms and conditions as may be decided by the board, subject to the approvals of shareholders. Further, the board has also approved the incorporation of the above mentioned subsidiary to carry on the IMFL business, Radico Khaitan said in a statement.

According to media reports, hiving off the IMFL division into a 100% subsidiary is a strategy that would provide independent existence to the business of IMFL and the business of bulk liquor.

Media reports suggested that Radico Khaitan's plan to hive off the IMFL business into subsidiary is seen as a prelude to Japanese spirits major Suntory Holdings picking up to a 50% stake in the unit. Suntory has reportedly begun preliminary talks to acquire a strategic stake in Radico Khaitan. Other Japanese companies such as Asahi are also understood to be in the fray.

Radico Khaitan managing director Abhishek Khaitan was quoted by media as saying that the company has been approached by multiple strategic investors to be part of its IMFL business. The company has decided to take an enabling resolution for demerger of the IMFL portfolio into a subsidiary of Radico Khaitan, where the company will bring in a foreign partner to enhance the shareholder value, Mr Khaitan said.

Khaitan added that there was no formal offer from any foreign partner yet, but the company's board would take the appropriate decision with regard to the future of IMFL business.

As on 30 September 2013, promoters held 40.49% stake in Radico Khaitan.

Radico Khaitan's net profit rose 6.58% to Rs 22.51 crore on 19.80% rise in net sales to Rs 348.44 crore in Q1 June 2013 over Q1 June 2012.

Radico Khaitan is one of India's oldest liquor manufacturers.