Orchid Pharma share price touched new 52-week high and was locked in 5% upper circuit on Friday's trading session, following the drugmaker's announcement of the launch of a Qualified Institutional Placement (QIP) issuance to raise capital. Orchid Pharma shares opened at ₹473 apiece on BSE. The stock hit intraday high of ₹474.65 and intraday low of ₹465.20.
The issue's floor price has been set at ₹425.19, a 5.5 percent discount to the stock's closing price on Thursday. According to an exchange filing on Thursday, the company can also provide a 5% discount on the issue's floor price.
According to an exchange filing, the company's board will meet again on June 27 to decide on the issue price of the QIP as well as any discount to be granted to the investors who would be issued the shares.
According to CNBC-TV18's sources, the base size for the offering is roughly ₹300 crore, with an option to upsize up to ₹400 crore. The indicative issue price is set to be ₹403.93 per share, a 10.6 percent discount to the stock's closing price on Thursday.
In December of last year, the board of directors of Orchid Pharma approved a ₹500 crore QIP issue.
A QIP issuance allows an Indian-listed firm to obtain money from chosen institutional investors in the domestic markets without submitting any pre-issue documents to the market regulator.
As per trendlyne data, the stock price rose 68.9% and outperformed its sector by 50.8% in the past year. The stock was trading at high day volume of 26,446 on Friday's session.
According to Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One, the stock has a low volume counter, generally volumes are less than 10k every day , today also even though upper circuit volume are just below 30k, technical view on such counters not possible.
