• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager
• Smartbuy

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth
• Events 2007

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Mumbai, April 21 For the second consecutive working day since it touched its 52-week high, the shares of Chennai-based Orchid Chemcials and Pharmaceuticals Ltd have been on the downslide.

The stock saw a 11-per cent drop on both BSE and NSE on Monday. On Thursday, the scrip had slipped 12.5 per cent on the BSE and 14.77 per cent on the NSE, after having scaled its highest peak of 16 per cent just the previous day.

The stock’s sharp fall on Monday was because of the much anticipated open offer by Ranbaxy is no where in sight, say analysts. “The share price of Orchid Chemicals surged last week due to the anticipation of an open offer by Solrex. But now since this has not panned, the stock is discounting the same,” said Ms Sarabjit Kour Nangra, Vice-President, Research, Angel Broking.

Solrex, a Ranbaxy group company, had picked up over 14 per cent stake in the Chennai-based drug majorOrchid Chemicals, according to disclosures on the BSE and NSE. Orchid’s shares had seen a steep increase last week on the expectation that Solrex would pick up more equity to touch the 15 per cent mark that would trigger an open offer for Orchid’s shares.

Other institutional investors that have stakes in Orchid Chemicals include Life Insurance Corporation of India, United India Insurance Company, Macquarie Bank and Fidelity Trustee Company. According to data on the NSE Web site, Macquarie Bank sold 10 lakh of its shares held in the company on Monday. The scrip, though, continues to be among the most actively traded stocks on the bourses, witnessing a good deal of day trading.

Since March 25 the stock has seen a run up in its share price and hit a 52-week-high of Rs 330 on April 16. This is a 210-per cent jump from the 52-week low that it touched on March 24, 2008. “The smart investors started buying the once the stock was at low levels. The stock surged last week due to speculation regarding the open offer. What we are seeing in the last two days is a natural correction as investors, who anticipated an open offer, are now selling off their positions due to the silence regarding the open offer,” said Mr Prashant Bhansali, Director, Mehta Equities Ltd.

More Stories on : Stocks | Open Offers | Pharmaceuticals

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Corporate developments

Copyright © 2008, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line