Lupin, which surged in trade last week following the US FDA approval for key respiratory drug gSpiriva, is weighing an internal restructuring exercise as part of which the pharma major plans to demerge its API (active pharmaceutical ingredients ) business, which is in revival mode, multiple industry sources with knowledge of the matter.

"Lupin is planning to carve out its API vertical in a bid to unlock value . It remains to be seen if a potential listing or a stake sale of the separated entity is explored at a later stage," said one of the persons above."

A second person confirmed the above internal rejig plans.

"Yes, the demerger option is being pursued and deliberations are at an advanced stage," this person said warning that the talks may or may not necessarily fructify into an eventual transaction."