The share price of Vipul Limited dropped more than 5 percent during Friday’s trading session following the company’s announcement of raising ₹3,10,00,000 by divesting 33.33 percent stake in Mudra Finance.

According to the exchange filing, the company entered into the agreement on January 9 and the expected date of completion is January 24.

“This is to inform you that the Company has entered into an agreement to disinvest its 33.33% stake in M/s. Mudra Finance Limited, an associate of the Company. Upon completion of the transaction, M/s. Mudra Finance Limited, an associate of the Company will cease to be associate of the Company,” the company said in the filing.