Promoters of Chennai-based Orchid Chemicals and Pharmaceuticals will increase their stake in the company to 23 per cent from the existing 15.72 per cent following conversion of warrants, a company official said.
"The company had issued warrants to promoters around 18 months ago, which would be converted into shares by next week. After the conversion, promoters' stake in the company would go up to 23 per cent," said a spokesperson of the company.
The development comes in the back drop of Japanese drug major Daiichi acquiring majority stake in Ranbaxy, which at one point of time was speculated to launch an open offer for Orchid shares after a group company of the Gurgaon-based firm had acquired 14.7 stake through open market purchase.
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Later, Orchid and Ranbaxy entered into a strategic tie-up involving multiple geographies and therapies for both finished dosage formulations and active pharmaceutical ingredients (APIs).
The Chennai-based company has also expanded its operation in European and Japanese market, and is also expecting a growth of 15-20 per cent in the current financial year.
"In the current financial year, we are targeting a growth of 15-20 per cent by expanding our business in the European market and by launching some new products," the spokesperson added.
