Orchid Chemicals & Pharmaceuticals is planning to raise about Rs1,000 crore primarily to repay the foreign currency convertible bonds (FCCBs) that would fall due in February 2012.
While using a majority of the funds towards the FCCB obligation, the company would use the balance for discharging some of the debt and pursue organic and inorganic opportunities.
The funds are expected to be raised in the next quarter.
The FCCBs carry a face value of about $117 million. The total value of the bonds, including the redemption premium, has been pegged at $163 million (Rs735 crore). The company currently carries a debt of about Rs1,836 crore including the FCCBs and term loans.
For the current fiscal, the company is expecting revenues of $500 million, or about Rs2,250 crore, with about Rs850 crore expected to come in from the regulated markets, Rs750 crore from emerging markets and another `600 crore from formulations.
“We are guiding a growth of 25% in the topline in fiscal 2011. The growth in bottomline would be more than proportionate,” Raghavendra Rao, the company’s managing director, said.
Orchid’s growth strategy, according to him, is different today from what it was last year. “We have adopted a more predictable model. The model is risk-free with more long-term contracts,” he said.
For the year ended March 2011, the company recorded revenue of about Rs1,716.99 crore with a net profit of Rs339.25 crore.
The drug maker sees full year impact of some of the approved products in its topline along with new approvals from the US market. It is also expecting the launch of a non-antibiotic product in the second half of the current year. While the company has 42 product filings so far, it has eight first-to-file (FTF) products.
“We will launch two of the FTF products this year and another two to three in the next year. By fiscal 2014, all the FTF products would hit the market,” Rao said.