Stocks

Orchid Pharma fixes OFS floor price at 72% discount

Our Bureau Chennai | Updated on June 23, 2021

Stake sale for institutions opens on Thursday while for retail, it opens on Friday

Orchid Pharma has set the floor price for its offer for sale at ₹375— a huge discount of 72 per cent to the stock’s closing price of ₹1,319.80.

The OFS will open for subscription on June 24 for non-retail investors and on June 25 for retail investors. The OFS is being conducted to meet the minimum public shareholding of 25 per cent, as currently, the promoters hold 98.04 per cent.

Also read: Easier minimum public offer norms come into effect

Dhanuka Laboratories, one of the promoters of Orchid Pharma, proposes to sell 32.80 lakh shares, representing 8.04 per cent of the total issued and paid-up share capital of the company.

Wild swings since listing

It may be recalled that Dhanuka Laboratories took over Orchid Pharma through corporate insolvency resolution process.

The stock, which got relisted in November at ₹18, climbed to a high of ₹2,680 in April 5, 2021. But since then, the stock has lost over 50 per cent to current levels. According to shareholding pattern data ending-March 2021, the promoter of Dhanuka Laboratories held 98.04 per cent stake in Orchid Pharma while a mere 1.92 per cent was being held by the public.

Published on June 23, 2021

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