The pharmaceutical company has allotted 9,902,705 equity shares to qualified institutional buyers at the issue price of Rs 403.93 each, aggregating to Rs 400 crore. The qualified institutions placement (QIP) Issue opened on 22 June 2023 and closed on 27 June 2023.

The company has allotted 23,51,893 shares (23.75% of the total issue size) to Massachusetts Institute of Technology, 19,31,028 shares (19.5% of issue size) to two funds of Quant Mutual Fund, 6,18,919 shares (6.25% of issue size) to Carnelian Structural Shift Fund, 6,18,919 shares (6.25% of issue size) to 238 Plan Associates LLC and 5,94,162 shares (6% of issue size) to Societe Generale.

Pursuant to the allotment of equity shares in the issue, the paid-up equity share capital of the company stands increased from Rs 408,164,000 comprising of 40,816,400 equity shares to Rs 50,71,91,050 comprising of 5,07,19,105 equity shares.

Orchid Pharma intends to use the net proceeds from the issue towards investment in its wholly owned subsidiary Orchid Bio-Pharma for setting up a new manufacturing facility in Jammu; for repayment/prepayment, in full or in part, of certain outstanding borrowings availed by the company; funding capital expenditure requirements for setting up a new block at API Facility of the company in Alathur, Tamil Nadu; and for general corporate purposes.

Orchid Pharma is one of the leading pharmaceutical companies in India head quartered in Chennai and involved in the development, manufacture and marketing of diverse bulk actives, formulations and nutraceuticals with exports spanning over 40 countries.

The company reported consolidated net profit of Rs 59.14 crore in Q4 FY23 as against a net loss of Rs 6.59 crore in Q4 FY22. Net sales rose 17.8% to Rs 209.90 crore in Q4 FY23.