Orchid Chemicals looks to buy-back FCCBs | business | Hindustan Times
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Orchid Chemicals looks to buy-back FCCBs

business Updated: Dec 17, 2009 16:20 IST

Orchid Chemicals & Pharmaceuticals today said it is exploring opportunities for the buy-back of its outstanding Foreign Currency Convertible Bonds (FCCBs).

"The company may purchase the bonds from the markets and extinguish from time to time at its sole discretion under the regulations," Chennai-based Orchid Chemicals said in a filing to the Bombay Stock Exchange (BSE).

The company, yesterday said it will use the $400 million, garnered by selling its generic injectable business to the US drug firm Hospira, to retire its debts and for the development of new products.

"We would use the money in retiring debts and in developing new products," Orchid managing director K Raghavendra Rao had said.

At present, the firm has a debt of about Rs 1,200 crore, besides a liability of $155 million in FCCBs, which would mature in 2012. The company also has a tax liability of $20 million.

Orchid has signed an agreement with Hospira to sell its generic injectable finished dosage business for about Rs 1,800 crore ($400 million).

Shares of Orchid were trading at Rs 197.60, down 0.13 per cent in late afternoon trade on the BSE.