Financial Daily from THE HINDU group of publications
Tuesday, Jul 19, 2005
Financial Daily from THE HINDU group of publications Tuesday, Jul 19, 2005 |
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Corporate
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Bonus Announcements Orchid board okays 1:2 bonus Our Bureau
Chennai , July 18 Orchid Chemicals & Pharmaceuticals Ltd plans to issue bonus shares in the ratio of one share for every two shares held. The company will seek its shareholders' approval at a meeting to be convened for this purpose. The board approved this decision at its meeting today when it also took on record the unaudited results for the first quarter of 2005-06. For the first quarter of this year, Orchid has reported a net profit of Rs 7.33 crore on sales of Rs 170.25 crore against a net profit of Rs 4.69 crore on sales of Rs 173.86 crore for the same period last year. Interest and finance charges were up at Rs 20.76 crore (Rs 16.86 crore). At the company's annual general meeting today, shareholders approved resolutions to raise long-term funds through the issue of Global Depository Receipts (GDRs) , a preferential allotment of warrants convertible into equity to the promoters, an employee stock option scheme and an increase in authorised capital from Rs 45 crore to Rs 55 crore. Orchid proposes to raise $ 100 million (about Rs 435 crore) plus an additional 15 per cent greenshoe option. The GDR issue is to help the company meet the further financial outlay on multi-therapeutic expansion that it has planned and also to accelerate drug discovery and to reduce the interest burden. The Managing Director, Mr K. Raghavendra Rao, told the shareholders that a GDR issue was a better way to raise funds than a rights issue, as it could be sold at a premium to prospective investors. The shareholders approved a proposal to issue 25 lakh warrants convertible into equity shares on a preferential basis to the promoters. The warrants will be issued immediately and each warrant will be convertible at the end of 18 months into one equity share at a price of Rs 339.41, including a premium of Rs 329.41 per share. After this issue, the promoters' shareholding will go up to 26.52 per cent from 20.60 per cent as of March 31, 2005. However, their holding will come down to around 20 per cent after the GDR issue. After the GDR issue, the total foreign shareholding in the company will be close to 50 per cent, from 44.39 per cent as of March 31, 2005.
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