Here is why stock of Burnol-maker Morepen Lab surged 10% intraday

Shares of Morepen Laboratories advanced nearly 10 per cent in trade on Friday following news report that the company may sell its OTC (over-the-counter) business of market leading brands such as Burnol to Ajay Piramal Group.

"Morepen has mandated Deloitte Touche Tohmatsu to run a formal process and negotiations are at an advanced stage," said a report in Economic Times, quoting sources.

Reacting to the news, the stock of Morepen Lab gained as much as 9.87 per cent on the BSE. However, the scrip settled the day 5 per cent higher.

Meanwhile, the Exchange has sought clarification from the company, with reference to the news flashed on Economic Times with headline "Morepen in Talks to Sell OTC Business to Piramals".