Ranbaxy group closer to 15 per cent stake in Orchid

Mumbai: Ranbaxy-promoted firm Solrex Pharmaceuticals is expected to have bought a further 3.3 per cent stake in Orchid Chemicals, taking its holding in the Chennai-based pharma company to 14.7 per cent, closer to the threshold limit of 15 per cent beyond which the company will have to make an open offer.

It had been earlier reported on Friday that Solrex had acquired 1.02 per cent shares of Orchid on the BSE, while 1.1 per cent of equity changed hands on the NSE, although the buyer and seller were unknown.

The Securities and Exchange Board regulations stipulate that Solrex should make an open offer for 20 per cent equity once its stake in Orchid touches the 15 per cent threshold.

While Ranbaxy itself said the company did not believe in hostile takeovers, observers do not rule out a takeover attempt and some even believe Ranbaxy to get involved to strike a deal with Orchid.

On Friday, Orchid shares ended 8 per cent higher at Rs247, against a peak of Rs260 and an intra-day low of Rs106.50, on March 24.

The spike fuelled further interest in Orchid shares, which had agreed to a pact with the Ranbaxy group to bring in funds from another investor.