The company made the announcement during market hours today, 30 September 2015.

Meanwhile, the S&P BSE Sensex was up 281.74 points or 1.09% at 26,060.40.

On BSE, so far 1.83 lakh shares were traded in the counter as against average daily volume of 64,579 shares in the past one quarter.

The stock hit a high of Rs 350 and a low of Rs 335 so far during the day. The stock had hit a 52-week high of Rs 435.40 on 1 December 2014. The stock had hit a 52-week low of Rs 175 on 24 June 2015.

The stock had outperformed the market over the past one month till 29 September 2015, surging 24.46% compared with Sensex's 2.33% fall. The scrip had also outperformed the market in past one quarter, jumping 75.9% as against Sensex's 6.75% fall.

The small-cap company has equity capital of Rs 16.20 crore. Face value per share is Rs 10.

Vivimed Labs said it has signed a definitive agreement for the transfer and sale of identified products along with their associated trademarks and assets within the speciality chemicals division, subject to requisite regulatory, statutory and shareholders' approvals. As part of this transaction, the company will divest certain products within its specialty chemicals portfolio to Clariant Chemicals (India), a subsidiary of world's leading speciality chemical company, Clariant AG of Switzerland. The transaction values the identified product lines at an enterprise value of Rs 380 crore, Vivimed Labs said.

The potential transaction was taken on board and forwarded for shareholders' approval in a meeting of the Board of Directors of Vivimed Labs held on 12 September 2015, the company said. The part of the speciality chemicals division's business, which is proposed to be divested, accounted for about 10% of the consolidated revenue from operations in FY2015, Vivimed Labs said. A major portion of the receipts will be used to reduce debts thereby saving substantial interest costs going forward, the company said. Furthermore, it will provide increased financial flexibility to pursue profitable growth across both its business segments with focus on growing pharmaceutical API and finished dosage forms businesses in regulated markets, Vivimed Labs said in a statement.

On consolidated basis, Vivimed Labs' net profit rose 41.1% to Rs 24.17 crore on 9.6% decline in net sales to Rs 331.53 crore in Q1 June 2015 over Q1 June 2014.

Vivimed Labs is a leading manufacturer and exporter of specialty chemicals mainly used in the personal-care and pharmaceutical industries.