Mumbai: Ranbaxy group firm Solrex Pharmaceuticals Co, which mopped up Orchid stock in the open market, leading to speculation about a possible takeover of the company, today acquired a further 675,000 shares, or 1.02 per cent in Orchid Chemicals & Pharmaceuticals, through a bulk deal on the Bombay Stock Exchange.

According to BSE website data, the deal was struck at Rs245.89 per share.

A further 720,270 shares, or 1.1 per cent of equity, changed hands in block deals on the BSE and National Stock Exchange, but details of the buyer and seller were not available.

Solrex, which has been linked to Ranbaxy Laboratories, India's largest drug maker, now has 11.4 per cent in the Chennai-based Orchid, a bulk drugs and formulations maker.

Even as the Ranbaxy group made it clear that it wasn't interested in hostile takeovers, the group's two-way presence in the Orchid Pharmaceuticals is the topic of intense discussion in market circles.

Orchid promoters' plan to hike their stake in the company had to be held back in March as the local arm of Bear Sterns offloaded Orchid stock along with its holdings in 25 other Indian companies following the failure of Bear Stearns globally.

Orchid promoters had raised their stake in the company from 17 per cent to 24 per cent since then. They had entered into a margin funding contract with Indiabulls and Religare.

Religare Enterprise, the financial arm of the Ranbaxy Group, had provided margin funding to the the promoters while they raised their stake in the company.  Again,  Solrex Pharmaceuticals, a related firm of the Ranbaxy group, has now mopped up Orchid stock from the open market.

However, following offloading by Bear Stearns, the Orchid stock price fell and to that extent, the Orchid promoters had to sell their stakes in the market to maintain the margin account with Indiabulls and Religare. The Orchid stock ended at its four and half year low at Rs113.60 at that time.