Orchid Pharma locked in upper circuit, QIP floor price set at Rs 425

Shares of Orchid Pharma were locked in a 5 percent upper circuit on June 23 morning after the company launched a qualified institutions placement (QIP) of equity shares, which is at a discount of about 5 percent to the previous closing price.

The company said it has set the floor price at Rs 425.19. The company’s board will decide the issue price or any discount that it will offer on June 27.

Sources have told CNBC-TV18 that the base size for the issue is approximately Rs 300 crore, with an option to upsize up to Rs 400 crore. It was not immediately clear who else will be participating in this fundraising round.

As of 10 am, the stock traded up 5 percent at Rs 474.65 on BSE.

In FY23, the company’s year-on-year revenue growth was 20 percent and EBITDA grew 55 percent. The company reported a profit of Rs 16 crore during the year.

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The company is also working on capacity expansion by investing Rs 31 crore. This expansion includes the commissioning of a new sterile plant, the fifth such unit, which would mean an additional 20 percent sterile capacity that will give a significant boost to the sales this year, the management said in its last earnings call.

“With the reduction of debt and consolidation of the acquired business, we will now move towards our future, in a more confident way. The most important step in this direction is, the setting up of the 7-ACA plant, a step towards backward integration,” it said.

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