You are here: Home » Companies » News
Business Standard

Serum Institute ups stake in Orchid

BS Reporter  |  Chennai 

Cyrus Poonawalla-backed Serum Institute has increased its stake in drug major Orchid Chemicals and Pharmaceuticals Ltd by acquiring around 9,13,000 equity shares for Rs 11.6 crore. With this, Poonawalla’s stake in Orchid has gone up around one per cent, from 10 per cent.

As per information available with the exchanges, as on September 2011, Serum Institute had 2,529,197 shares, which is around 3.59 per cent of the total number of shares. The company bought around 4,13,000 equity shares at a price of Rs 120.95 per share on December 19 and 5,00,000 equity shares at a price of Rs 132.14 per share on December 20, 2011.

“Serum is a friendly investor and has been investing in Orchid since 2008. The current stake is probably an averaging strategy and the investors’ confidence in us,” said Ch Ram, head of corporate communications and investor relations, Orchid Chemicals and Pharmaceuticals Ltd.

While Serum held around 3.59 per cent stake in Orchid, Cyrus S Poonawalla individually held 7,20,000 equity shares of around 1.02 per cent till the quarter ended September, 2011.

The rest of the investments are through like Adurjee & Bros and Fortune Intercontinental, said sources.

The promoters and the promoter group had around 29.83 per cent stake in the company till end of September, 2011. Around 77 per cent of the promoter and promoter group stake was pledged till the end of quarter ended September, 2011.

This week, Orchid announced it has arranged fund of around $100 million external commercial borrowings (ECB) from a consortium of Indian banks to redeem its outstanding FCCB of $117 million.

The company has also received an initial milestone payment of $1.5 million (around Rs 7.96 crore) from Merck & Co Limited.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, December 23 2011. 00:34 IST