Orchid Pharma to raise $100 mn via GDR

Orchid Chemicals & Pharmaceuticals Ltd is planning to raise up to $100 million global depository receipts (GDR), which will be listed in Luxumbergue exchange.

The company Board, in its meeting on Wednesday, considered a proposal to raise long term funds by way of issue of GDRs in the international market of $100 million, with an additional 15 per cent green shoe option, the company has informed the Bombay Stock Exchange.

The company sources told Business Standard that the fund raised through the GDR, which is expected to be issued by August this year after the shareholders' approval, will be mainly utilised for the part payment of the company's debt that is currently amounted to Rs 200 million.

Part of the fund will also be used for its proposed entry into the non-antibiotic and life-style drugs market. As part of this, the company would develop and market products in the therapeutic segments of anti-diabetes, CNS (central nervous system) and CGS.

The company has also considered issue of 25 lakh warrants, convertible into equity shares to the promoters, in accordance with Sebi guidelines for preferential issue.

The authorised share capital is also being proposed to be increased to Rs 55 crore from Rs 45 crore.