Orchid Chemicals strengthens finances with GDR and FCCB issue

Chennai: The city-based bulk drug company Orchid Chemicals & Pharmaceuticals Limited has successfully raised $75 million through the issue of global depository receipts (GDR- $37.5 million) and foreign currency convertible bonds (FCCB-$37.5 million).

To be listed on the Luxembourg Stock Exchange, both the instruments have a greenshoe option of $5 million each. The GDRs (each representing one underlying share) were priced at $4.34 each (equivalent to Rs195 per share). The zero-coupon convertible bonds have a tenor of five years and are convertible into equity shares at a premium of 25 per cent.

According to managing director, Raghavendra Rao, "The funds will enable us to strengthen our balance sheet and accelerate our efforts to grow our business into regulated markets. The successful launch of Ceftriaxone in the US was our first step, and with these proceeds we expect to continue with our development and filing programme in line with our strategic objective to establish the Company as a leading integrated global pharmaceutical company."