Pharma Stock Hit 5% Upper Circuit After Board Plans To Raise Funds Through QIP

Orchid Pharma is a small cap company that opened today on the BSE at Rs 497.00 apiece and during the morning deals the stock hit a fresh 52-week-high of Rs 498.35 and locked in 5% upper circuit limit. Heavy buying demand seen in the stock after the Board of the company plans to raise funds via QIP.

The company's board is scheduled to meet on June 27 to discuss and consider the issue price of the QIP including any discount. The Board has approved the floor price of Rs 425.19 for the issue which is a discount of 9.53% based on the stock's Friday closing price.
The company is also ready to offer a 5% discount on the issue's floor price, according to an exchange filing on Thursday.

The initial size of the offering is about Rs 300 crore, with an option to upsize to Rs 400 crore, according to CNBC-TV18's sources. The launched indicative issue price for each share is Rs 403.93. The board of directors of Orchid Pharma approved a Rs 500 crore QIP issuance in December of last year.

The company recorded a net income of Rs 211.62 Cr during Q4FY23 up by 17.65% YoY from Rs 179.87 Cr in Q4FY22. During the March 2023 quarter the company's net profit reached Rs 59.13 Cr, up by 997.91% YoY from a net loss of Rs 6.58 Cr recorded during the March 2022 quarter.

The firm recorded a total income of Rs. 685.3289 crores for the fiscal year that ended on March 31, 2023, up from Rs. 568.5603 crores for the fiscal year that ended on March 31, 2022, representing a growth of 20.54% year on year. In comparison to the net loss of Rs 1.95 Cr in 12MFY22, the company's net profit in 12MFY23 was Rs 46.31 Cr, which is a rise of 2,473.84% YoY.

During Q4FY23, the company reported promoters' stake of 89.96% and public stake of 10.04%. Orchid Pharma is a small cap company and is ranked among the top 50 pharmaceutical companies in India.