The Hindu Business Line : Ranbaxy’s buy in Orchid turns an appetising pill

Mumbai, April 14 Andhra Pradesh-based Krebs Biochemicals and Karnataka-based Jupiter Biosciences seem to be basking in the interest reflecting off Ranbaxy’s growing stake in Chennai-based Orchid.

Ranbaxy holds 14.9 per cent equity in both Krebs and Jupiter, and the two listed entities have seen close to 16 per cent and five per cent increase in their respective stock prices over the last week. The development comes even as Ranbaxy’s group company Solrex Pharmaceutical Company further ramped up its equity in Orchid to over14 per cent , within a striking distance of the 15 per cent mark that would trigger an open-offer for Orchid’s shares. Solrex bought an additional 3.29 per cent stake in Orchid on Friday, through two bulk deals on the NSE and BSE.

Krebs Biochemicals & Industries Ltd, a company that strengthens Ranbaxy’s presence in the active pharmaceutical ingredients business, gained 15.93 per cent over the past one week even after it lost 4.78 per cent on Friday to close at Rs 52.75 on BSE.

Jupiter Biosciences, through which Ranabxy gets a foothold in the peptides segment, gained 6.42 per cent over the last one week closing on Friday at Rs 152.60.

Hyderabad-based Zenotech Laboratories Ltd, the third local company in which Ranbaxy recently picked and ramped-up its equity to 45 per cent, also rose by 4.48 per cent over the past one week, though Friday it shed nearly three per cent to close at Rs 99.10.

Meanwhile, promoters of Orchid Chemicals received a fresh onslaught from the Ranbaxy Group’s Solrex on Friday, which took their shareholding in the company much closer to the 15 per cent-mark through two bulk deals on Friday that adds up to 21.72 lakh shares or 3.29 per cent of total share capital.

Solrex had upped its stake in the Chennai-based company to around 12 per cent recently which had made the stock quite volatile over the past one week, as it attracted lot of attention from other investors in the market, especially day traders. As last week closed, Solrex had bought 14.97 lakh shares on the NSE and on the BSE the company bought 6.75 lakh shares of Orchid Chemicals through bulk deals on Friday.