Orchid Pharma gets board gesture to raise Rs 500 cr through QIP

The board of directors of Chennai-based Orchid Pharma on Thursday approved issuance of a qualified institutional placement (QIP) to mop up Rs 500 crore.

Edelweiss Financial Services and JM Financial are the investment banks handling the share sale. After a successful turnaround of the Insolvency Bankruptcy Code case, the company has been on track for growth, it said. With this QIP, the Dhanuka group, which took over the company in 2018, is also meeting its mandatory obligation to dilute 15% stake in the company by March 2023.

Orchid Pharma had reported a 36% jump in revenue from operations while and 104% rise in Ebitda in the quarter ending September.

Mridul Dhanuka, whole-time director, Orchid Pharma told analysts recently: “With the levers that we are working on, we feel that our dream of being the leading antibiotic player in the world could materialise soon.”

The implementation of the PLI scheme for making critical key starting materials or drug intermediaries, will lead to comprehensive backward integration of Orchid’s supply chain, the company has said.

Orchid Pharma in August said it will shell out close to Rs 500 crore over the next two years to set up a new plant under the PLI scheme. The company has plans to build the factory in two year and then run it at full capacity.