Orchid Pharma launches QIP to raise funds - Floor price fixed at Rs 425

The company's board will meet again on June 27 to determine the issue price of the QIP along with deciding on any discount to be given to the investors who will be issued the shares.

Sources have also told CNBC-TV18 that the indicative issue price is likely to be Rs 403.93 per share, which will be a 10.6 percent discount to the stock's closing price on Thursday.

A QIP issue allows an Indian-listed company to raise capital from the domestic markets from select institutional investors without having to submit any pre-issue filings to the market regulator.

While the company has not specified what it plans on doing with the proceeds, it will enable the promoters - Dhanuka Laboratories Ltd. to dilute some stake in the company to comply with minimum public shareholding norms. As of the March quarter, Dhanuka Laboratories held 89.96 percent stake in the company.

Shares of Orchid Pharma are locked in a 5 percent upper circuit at Rs 470, adding to Thursday's 4 percent advance. The stock has risen nearly 30 percent on a year-to-date basis.