Orchid Pharma Ltd. has informed that its board of directors has approved the company’s Qualified Institutional Placement (QIP) programme to raise Rs. 500 crore, subject to approval of the shareholders.

Edelweiss Financial Services Limited and JM Financial Limited are the investment banks handling the share sale.

Post a successful turnaround of the Insolvency Bankruptcy Code case, the company has been on a growth spree. On the back of a robust product launch pipeline and an agile management team, the company is poised to become an even stronger player in the Cephalosporin antibiotics space.

With this QIP placement, the Dhanuka group, which took over the company in 2018, is also meeting its mandatory obligation to dilute 15 percent stake in the company by March 2023.

Orchid Pharma Limited established in 1992 as an export-oriented unit (EoU), the company is a vertically integrated company spanning the entire pharmaceutical value chain with established credentials in research, manufacturing, and marketing.

Orchid is the only Indian pharmaceutical company to ever have invented a New Chemical Entity (NCE, also colloquially called New Drug) which has cleared Global Clinical Trials of Phase Il. The molecule is out-licensed (on Royalty model) and now under worldwide New Drug Approval Process.

Orchid is a pioneer in Production of Quality Cephalosporins especially the Sterile Products, for which it is the one out of the only three USFDA approved facilities in the world, and the only one from India. Besides this, the facility has other approvals like EU GMP, ANVISA and PMDA.

Dhanuka Group acquired Orchid Pharma Ltd. through CIRP (Corporate Insolvency Resolution Process) under IBC (Indian Bankruptcy Code) on 31st March, 2020. Since then, the company has gone through a transformation going from a negative EBITDA to healthy positive numbers.