What appeared to be a takeover bid at one point of time, has come a full circle now. After mounting a takeover threat on Chennai-based Orchid Chemicals & Pharmaceuticals way back 2008 with its 14.6% stake (through creeping acquisitions), Solrex Pharmaceuticals, an arm of Ranbaxy Laboratories, has exited Orchid by selling its entire stake in the open market over the last two to three months.
It assumes significance at a time when Orchid?s prime and single largest shareholder Symphony Capital (formerly known as Schroder of Singapore) had completely exited a few days ago by selling its 15% stake (post expanded capital of Orchid) in the open market. Interestingly, Orchid promoters also increased their stake sharply to 31% from 26% during the last few months by purchasing 5% from the open market. Solrex?s stake in Orchid came down to 13% from 14.6% after the latter expanded its capital through FCCB and GDR issues. Solrex has been involved in selling its stake over the last two months. The company has sold nearly 5% in the open market during August, followed by sale of the remaining 8% stake in the last four days ending September 23, 2010. Though the reasons for Ranbaxy arm’s exit from Orchid are not known, market sources pointed out that Solrex must have found that its investments in Orchid did not fit into its strategic growth plan anymore and accordingly decided to exit. When contacted, Ch Ram, head of investor relations, Orchid Chemicals, confirmed the developments and exit of Solrex.
