Shares of Orchid Chemicals & Pharmaceuticals today surged almost 10 per cent after the Corporate Debt Restructuring Empowered Group (CDR EG) approved its debt restructuring proposal.
Orchid Chemicals' stock ended with a gain of 9.95 per cent at Rs 53.60 -- its upper circuit limit on the BSE.
At the NSE, the scrip gained 9.95 per cent to Rs 53.60.
"... The CDR EG has issued the letter of approval dated March 10, 2014 and the Board of Directors of the company have approved the same today," the company had said in a filing to the BSE on Friday.
As per the terms of debt restructuring, the company will sell and transfer its Penicillin and Penems (including Carbapenems) API business together with its manufacturing facilities at Aurangabad, Maharashtra and associated research and development facility at Sholinganallur, Chennai, it said.
From the sale proceeds, Orchid will repay part of its debt, amounting to Rs 681 crore, to the lenders, while rest of the debt (Rs 2,866 crore) will be restructured, the company had said.
