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Orchid Chemicals soars as promoters plans to raise stake to 45% in the company

15 Jul 2014 Evaluate

Orchid Chemicals & Pharmaceuticals is currently trading at Rs. 77.20, up by 4.15 points or 5.68% from its previous closing of Rs. 73.05 on the BSE.

The scrip opened at Rs. 75.70 and has touched a high and low of Rs. 78.30 and Rs. 75.70 respectively. So far 368367 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 10 has touched a 52 week high of Rs. 83.90 on 07-Jul-2014 and a 52 week low of Rs. 35.00 on 06-Aug-2013.

Last one week high and low of the scrip stood at Rs. 82.00 and Rs. 68.85 respectively. The current market cap of the company is Rs. 542.48 crore.

The promoters holding in the company stood at 32.28% while Institutions and Non-Institutions held 7.01% and 56.13% respectively.

Orchid Chemicals & Pharmaceuticals’ promoters are planning to increase their stake in the company to 45%. In this regard, the company’s board has approved the issue of shares to Promoters on a preferential basis pursuant to the conditions of CDR package sanctioned to the Company by Corporate Debt Restructuring Cell.

Orchid, which has been having high levels of debt since it successfully redeemed its outstanding FCCBs in February 2012, approached the CDR Empowered Group for restructuring its debt profile in June 2013. The approval for the CDR Package was received in March 2014.

The company also entered into a Business Transfer Agreement (BTA) with Hospira for the sale and transfer of its Penicillin and Penem API business and the API facility located in Aurangabad (Maharashtra) together with the R&D Centre located in Chennai. This business transfer was added as a part of the restructuring process into the CDR package.

Orchid Chemicals & Pharmaceuticals is a pharmaceutical company engaged in development and manufacture of active pharmaceutical ingredients (APIs) and finished dosage forms. It is also engaged in research of new drugs. The company was incorporated in the year 1992 as a 100% export-oriented unit (EOU).

 

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