Orchid Chemicals gains over 13% in two sessions

Orchid Chemicals & Pharmaceuticals rose 2.89% to Rs 55.15 at 14:46 IST on BSE, extending Tuesday's 10% rise triggered by the company's corporate debt restructuring empowered group approving the debt restructuring package.

The company made the announcement after market hours on Friday, 14 March 2014. The stock market was closed on Monday, 17 March 2014, on account of Holi.

Shares of Orchid Chemicals & Pharmaceuticals hit an upper circuit limit of 10% at Rs 53.60 on Tuesday, 18 March 2014. The stock has risen 13.13% in two sessions from Rs 48.75 on 14 March 2014.

Meanwhile, the BSE Sensex was down 8.27 points, or 0.04%, to 21,824.34.

On BSE, so far 4.91 lakh shares were traded in the counter, compared with an average volume of 2.67 lakh shares in the past one quarter.

The stock hit a high of Rs 57.80 and a low of Rs 54.80 so far during the day. The stock hit a 52-week high of Rs 78.25 on 19 March 2013. The stock hit a 52-week low of Rs 35 on 2 August 2013.

The stock had outperformed the market over the past one month till 18 March 2014, rising 21.68% compared with the Sensex's 5.81% rise. The scrip had, however, underperformed the market in past one quarter, sliding 12.99% as against Sensex's 4.66% rise.

The small-cap company has an equity capital of Rs 70.45 crore. Face value per share is Rs 10.

As per the terms of the Corporate Debt Restructuring (CDR) scheme, Orchid Chemicals & Pharmaceuticals (Orchid) will sell and transfer its Penicillin and Penems (including Carbapenems) API (active pharmaceutical ingredient) business together with its manufacturing facilities at Aurangabad, Maharashtra and Associated Research and Development (R&D) facility at Sholinganallur, Chennai.

Orchid will repay (Rs 681 crore) a portion of the total debt to lenders out of the sale proceeds and restructure the balance debt (Rs 2866 crore). The company will carve out a portion of sale proceeds for meeting the working capital requirements of the company.

The company will get interest funding for the first two years from the cut-off date (1 April 2013) for interest on term debts and one year for interest on working capital borrowings.

The restructured debt together with funded loans would have to be repaid over a period of 8 years starting from April 2015 subject to regulatory approvals.

The restructuring process would be implemented by an appointed Monitoring Committee (MC) of CDR lenders, the company said in a statement.

Orchid Chemicals & Pharmaceuticals reported a net loss of Rs 53.90 crore in the quarter ended 31 December 2013, lower than net loss of Rs 72.36 crore in the quarter ended 31 December 2012. Revenue rose 19% to Rs 371.60 crore in the quarter ended 31 December 2013 over the quarter ended 31 December 2012.

Orchid had extended its last financial year (FY) 2012-13 by six months to 30 September 2013. Consequently, the current FY 2013-14 will consist of only six months i.e. from 1 October 2013 to 31 March 2014.

Orchid Chemicals & Pharmaceuticals is involved in the development, manufacture and marketing of diverse bulk activities, formulations and nutraceuticals.

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