Orchid Pharma Ltd. on Thursday announced that the company’s board has approved the issuance of equity shares up to Rs 500 crore with a face value of Rs 10 each through the qualified institutional placement (QIP) route.
A QIP is essentially a capital-raising tool for listed companies through which they can issue equity shares, fully and partly convertible debentures, or any securities other than warrants that are convertible to equity shares to qualified institutional buyers (QIBs).
Last month, Orchid Pharma said its total revenue from operations increased 36 percent year-on-year while operating profit jumped by a massive 104 percent.
Orchid Pharma was acquired by the Dhanuka Group, through its pharmaceutical arm Dhanuka Laboratories Ltd., via the Corporate Insolvency Resolution Process on March 31, 2020. The Dhanuka Group is now planning to dilute a 15 percent stake in the pharma company by March 2023 to meet regulatory norms.
The stock has remained largely flat over the past year, slipping 1.1 percent during the period compared to a nearly 11 percent rise in the benchmark Sensex.
Shares of Orchid Pharma ended at Rs 390, down 1.85 percent on Thursday.
