Mumbai, Aug. 26: ACRAF of Italy is picking up a 10 per cent stake in Elder Pharmaceuticals for Rs 25.58 crore. Close to 16 lakh shares will change hands at Rs 160 apiece.

Elder today told stock exchanges that the decision on the allotment was taken at its board meeting on Wednesday.

Report of the deal sent the Elder share racing to an intra-day high of Rs 153.80 after it opened at Rs 146.80 on the BSE today. It, however, came off the peak to finish at Rs 143.90.

Sources said part of the money raised from the transaction will finance a unit in Uttaranchal, while the rest will help retire old loans. Elder would also make some of the products of the Italian firm, with which it already has a tie-up in non-steroidal anti-inflammatory drugs.

The company, whose Patalganga unit in Maharashtra went on stream recently, will also set up FDA-complaint facilities in Uttaranchal and Himachal Pradesh for Rs 80 crore. It raised $15 million through an overseas issue to finance these plans, which are part of a larger strategy to attain a turnover of over Rs 400 crore.

Elder started making products in the Rs 1,700-crore skin care segment, besides entering the Rs 3000-crore confectionery market. It has 24 strategic international partnerships for marketing various products in the country.

Some of its key brands are ShelCal, AM-PM, Mouthwash, Tiger Balm, Tiger Oil, Tiger Muscle Rub, Solo Cough Lozenges, Acne Away (herbal pimple cream), Neem Tone (herbal moisturising cream), Flyer Candy, Foltene (for hair loss and rejuvenation) and Solo cough syrup.