Orchid Pharma announces OFS at 72% discount

Mumbai: Orchid Pharma has announced an offer for sale (OFS) on Thursday at Rs 375 apiece, a discount of 72 per cent to the previous day’s closing price of Rs 1,319.8.

Shares of the company, which relisted on November 3, 2020, after being acquired by Dhanuka Laboratories, hit the upper circuit for 100 consecutive days. The stock jumped 150 times from Rs 18 to Rs 2,680 on April 1.

Dhanuka, which took over the pharma company under the NCLT resolution process in 2018, announced selling 32.80 lakh shares representing an 8.04 per cent stake in the company through OFS. The company has a total of 40.81 million outstanding shares, of which 98.04 per cent shares are with the promoters. To comply with Sebi’s minimum public holding norms, the promoters will have to reduce their holding from the current 98.01 per cent to 90 per cent by November.


The offer will open for subscription on Thursday for non-retail investors whereas retail investors can subscribe on Friday.