Shares of Orchid Pharma rose 5 percent on Friday’s first half session, hitting the upper circuit and reaching an all-time high of Rs 470 apiece on the NSE, amid fund-raising plans.
As per the exchange filing, the Company planned to raise funds through qualified institutions placement (QIP) of equity shares at a discount of around 5 percent to the previous closing price, with a floor price of Rs 425.19. On June 27, the company’s board of directors will decide on the issue price or any discounts that will be offered.
According to the CNBC-TV18 report, The issue’s base size is roughly Rs 300 crore, with an upsize of Rs 400 crore.
Orchid Pharma is a small-cap firm with a Market capitalization of Rs 1,918 crore. Over the last year, the stock has gained 66.84 percent ranging from Rs 281.70 to current levels.
Orchid Chemical & Pharmaceuticals Ltd was established in 1992. The company develops and manufactures active pharmaceutical ingredients (APIs) and final dosage forms. The firm is ranked among India’s top 15 pharmaceutical companies.
As per the company’s financials, Operating revenue increased by 17 percent to Rs 209 crore in Q4FY23 compared to the same quarter the previous year. Similarly, Net profit rose by 1083 percent to Rs 59 crores.
On a year-on-year basis, revenue climbed by 19 percent, from Rs 559 crores in FY 21-22 to Rs 665 crores in FY 22-23. During the same time period, the Net Profit improved by 186 percent, from a loss of Rs 56 crores to a profit of Rs 48 crores.
Company shares were trading at a price-to-earnings ratio (P/E) of 39.45, which is significantly higher than the industry P/E of 22.22 indicating that the stock might be overvalued as compared to its peers.
As per the FY22-23 shareholding pattern, the company’s promoters own 89.96 percent, while domestic institutional investors own 2.62 percent.
Written by Omkar C
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