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The move is to comply with the Corporate Debt Restructuring programme approved by the Consortium of Bankers and Corporate Debt Restructuring Empowered Group.
Post the allotment, promoters' shareholding is expected to increase to 46.37% from 32.28%.
The company is seeking shareholders' approval for the transaction through a postal ballot to be conducted in August, 2014.
According to a company filing with the regulators, Orchid Healthcare, which has a pre-issue holding of 36,46,324 equity shares in the company, would get around 1,85,12,251 equity shares for Rs 49.79 per share. The post-issue holding of the company would be 2,21,58,575 shares.
Orchid had approached the CDR Empowered Group for restructuring its debt profile in June 2013. The approval for the CDR Package was received in March 2014.
The company also entered into a Business Transfer Agreement (BTA) with Hospira for the sale and transfer of its Penicillin and Penem API business and the API facility located in Aurangabad (Maharashtra) together with the R&D Centre located in Chennai. This business transfer was added as a part of the restructuring process into the CDR package.
The company earlier said that it will be able to retire a portion of its dues through the CDR process and by utilising the balance portion of funds for its working capital needs, restructure the balance debt over a period of 10 years.
Of the total inflow of Rs 1,207 crore (Rs 1,134 crore from sale proceeds and Rs 73 crore from promoter contribution), the company will retire Rs 681 crore to the banks and after payment of tax of Rs 47 crore, the balance of Rs 479 crore will be utilised for working capital and growth needs.
