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Aarti Industries Ltd.'s shares tumbled over 13 percent in intraday trade on Wednesday ahead of the record date for the demerger of its Pharma business.

Earlier, the board of the company had fixed October 20 as the record date for the demerger into two companies - Aarti Industries and Aarti Pharma labs.

The rationale behind the separation of the Pharma business is so that the company can focus on the opportunities within the sector separately.

Listing of the de-merged pharma business is likely to take place by mid-December.

“The demerged entity will list around mid-December,” Rashesh Gogri, Vice Chairman and Managing Director at Aarti Industries, told CNBC-TV18 in September. The management said it expected the revenue and profit of the pharma business to grow between 15-20 percent.

In September, Morgan Stanley downgraded Aarti Industries to ‘underweight’ from ‘overweight’ and reduced its price target to Rs 685 from Rs 957. The brokerage cited raw material sourcing challenges, downside risks to volume growth, and muted expansion in margins until the end of 2024.

Shares of Aarti Industries are currently trading 8.5 percent lower at Rs 682.45, down 8.4 percent as of 2:10 PM.

(Edited by : Rukmani Krishna)