Orchid Chemicals' stock down by 17%

Orchid Chemicals, a Chennai-based pharmaceutical company lost 17% on the Indian bourses on Monday after company announced a plan to raise loan of $117 million via external commercial borrowing (ECB) to pay off Foreign Currency Convertible Bonds (FCCBs) maturing in February 2012.

The company has received a sanction of US $100 million by way of ECBs to repay the maturing bonds, K Raghavendra Rao, chairman and managing director, Orchid Chemicals told CNBC TV 18.

He further added that the company has also some internal accruals which will be used to repay the FCCBs.

The company's scrip touched a 52-week low over the news. At 2:15 pm IST, the company's stock was trading low at Rs 122.20 on BSE, down by 9.65% or 13.05 points. It touched an intraday low of Rs 112.25.

The company also mentioned about their hedge against currency fluctuation as their 85% sales comes in US dollars.

“We are replacing dollars with dollars and our borrowing is less than the repayment, so repayment issue will not be there after bonds mature in February,” chairman added.

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