After nearly 10 years of its active role in Orchid Chemicals & Pharmaceuticals, Singapore-based Symphony Capital (formerly known as Schroder of Singapore) is said to have exited Orchid completely by selling its remaining 2.97% stake, sources said.
With an investment of $40 million in 1999-2000, Symphony Capital was considered as the single largest shareholder. Two to three years ago, Symphony’s stake in Orchid Chemicals was reduced to 15% from a peak of 35% after Orchid expanded its capital through FCCB and GDR issues.
Symphony Capital is said to have been diluting its stake over the last two years in the open market and brought its stake down to 5% a few months back. In the last two to three months, the investor sold little over 2% and, a few days ago it further sold the remaining stake of 2.97%, thereby completely exiting Orchid. Apart from benefiting through dividends over the years, the investor also benefited through an issue of bonus shares in 2005. Symphony could have made a huge sum as the it was involved in selling stake at different point of time at different prices over the last two years or so, market sources said. An analyst with a leading brokerage house said normally investors tend to stay in a particular company for three to five years, but Symphony could stay in a company for 10 years.
