Orchid Chemicals & Pharmaceuticals rose 3.03% to Rs 54.35 at 14:33 IST on BSE on reports the company is planning to convert its rupee term loans into foreign currency loans to reduce interest cost.
Meanwhile, the BSE Sensex was up 220.69 points, or 0.86%, to 25,926.62.
On BSE, so far 2.53 lakh shares were traded in the counter, compared with an average volume of 1.19 lakh shares in the past two weeks.
The stock hit a high of Rs 55.90 and a low of Rs 54 so far during the day. The stock hit a 52-week high of Rs 81.75 on 16 September 2014. The stock hit a 52-week low of Rs 42.60 on 11 June 2015.
With reference to the news titled, "Orchid Pharmaceuticals in talks with banks to rejig debt", Orchid Chemicals & Pharmaceuticals clarified during trading hours today, 16 September 2015, to the stock exchanges that it is currently in talks with banks to explore the possibility of converting its rupee debt into dollar denominated debt. This plan is to try and reduce the interest burden on the company which will ultimately be beneficial to the company's bottom line.
The company said it will keep the stock exchanges informed as and when further developments take place.
According to reports, the total debt of the company is around Rs 3100 crore, out of which Rs 750 crore is foreign currency loan equivalent, Rs 500 crore is working capital and remaining Rs 1800 crore is rupee loan. The company is paying an interest of 11% for the loans. After conversion there will be an annual saving of Rs 125 crore.
Orchid Chemicals & Pharmaceuticals reported net loss of Rs 47.56 crore in Q1 June 2015 as against net loss of Rs 60.14 crore in Q1 June 2014. Net sales declined 8.94% to Rs 253.71 crore in Q1 June 2015 over Q1 June 2014.
Orchid Chemicals & Pharmaceuticals is a vertically integrated company spanning the entire pharmaceutical value chain from discovery to delivery with established credentials in research, manufacturing and marketing.
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