Make hay while the sun shines seems to be the catchword of some top honchos of Chennai-based Orchid Chemicals and Pharmaceuticals Ltd. Some of them have pocketed cool sums, selling a part of their holdings in the open market while the stock price went through the roof triggered by rumours of an impending hostile takeover bid from Ranbaxy?something that has been steadfastly denied by spokespersons of both the companies.
The Orchid stock opened on Thursday at its yearly high of Rs 343.35 but closed the day on the National Stock Exchange (NSE) at Rs 280, losing 12.42% in the bargain. On the Bombay Stock Exchange, the share rose to a high of Rs 328.5 before closing at Rs 279.3.
FE gathers that at least three directors of the company have sold a part of their holdings in the open market between April 4 and April 8 and booked handsome profits. While one director sold 2,000 shares on April 4, another sold 4,000 shares on April 7 and another tranche of 11,000 shares on April 8 in the open market. On the same day, another director has sold another 10,000 shares held by him in the company in the open market.
Incidentally, one of the directors who has sold the stock in April had bought 5,000 equity shares in the company on March 17 and another tranche of 10,000 shares on March 25. Similarly, another director who had sold a part of his holdings in April has bought 5,000 shares on March 18.
However, sources told FE that these transactions are well within the confines of law as the individuals have informed the authorities before the transactions and the stock exchanges were notified subsequently about the dealings. Orchid?s stock prices have been on a roller-coaster ride ever since a section of the media reported that the company is facing a hostile takeover bid from Ranbaxy.