Drugmaker Orchid Pharma Ltd., a Dhanuka Group company, has raised Rs 400 crore through a Qualified Institutional Placement (QIP), with investors like Massachusetts Institute of Technology and Societe Generale being allotted shares.

Share Market Live

NSE

The company's board on Tuesday night approved the issue and allotment of 99 lakh shares of a face value of Rs 10 each to buyers at an issue price of Rs 403.93 per share, which is a 5 percent discount to the floor price of Rs 425.19. The QIP was launched last week on June 22.

Post the alottment of shares, the paid-up equity share capital of the company has increased to Rs 50.7 crore, compared to Rs 40.81 crore earlier.

Massachusetts Institute of Technology, which has stake in multiple Indian companies, was allotted 23.5 lakh shares or 23.75 percent of the issue size, according to the exchange filing from Orchid Pharma. Other funds who were allotted more than five percent of the issue, include Quant Mutual Fund through two of its schemes, Carnelian Structural Shift Fund of Vikas Khemani, 238 Plan Associates LLC, and Societe Generale.

Based on the QIP document accessed by CNBC-TV18, the issue had a base size of Rs 300 crore, with an option to upsize up to Rs 400 crore. The higher end of the fund raise would result in dilution of 24.26 percent of pre-issue outstanding equity share capital, according to the document.

The company intends to utilise the proceeds from the QIP issue to invest in its wholly-owned subsidiary Orchid Bio-Pharma Ltd. (OBPL) to set up a new manufacturing facility in Jammu, repay or prepay certain outstanding borrowings in full or in part, fund capex requirements to set up a new block at the company's API facility in Tamil Nadu, and for general corporate purposes.

There would now be a lock-up period of 120 days for the company and its promoter, based on the document.

Shares of Orchid Pharma ended 0.3 percent higher on Tuesday, but have gained nearly 35 percent on a year-to-date basis.