Orchid Pharma approves amalgamation of Dhanuka Pharma with itself

Issues 10,000 equity shares of OPL for Rs 10 each at par to the shareholders of DPPL

The monitoring committee of Orchid Pharma Ltd (OPL) has approved the amalgamation of Dhanuka Pharmaceuticals Pvt Ltd (DPPL) into the company, and has issued 10,000 equity shares of OPL with a face value of Rs 10 each to the shareholders of DPPL, towards this end. The amalgamation scheme is is part of Dhanuka Laboratories (DLL)'s resolution plan to revive OPL.

As per the plan, OPL has issued 39.99 million equity shares of Rs 10 each to Dhanuka Laboratories Limited (DLL). The committee also issued 143,000 optionally convertible debentures of Rs 1,00,000 each amounting to Rs 143 crore to DLL. Four members from Dhanuka have also been co-opted on OPL's board.  

As part of the resolution plan, DLL infused Rs 370 crore and another Rs 40 crore into OPL. A third tranche of Rs 200 crore was made well within a period of a year from the implementation of resolution plan, as per its terms.

Lenders have been able to recover Rs 1,106.50 crore out of the total admitted debt of Rs 3,526.74 crore, apart from getting a one per cent shareholding. Some 4,08,164 equity shares have been issued to 22 secured financial creditors based on their exposure to the company.