Orchid Pharma Limited has submitted the Monitoring Agency Report for the Quarter-III ended December 31, 2025, regarding the utilization of proceeds raised through the Qualified Institutions Placement (QIP). The report, issued by Care Ratings Limited (now CareEdge), confirms the utilization progress across various objects, including the Jammu Manufacturing Facility and repayment of borrowings. While the Alathur API facility capex is fully utilized, the Jammu project faces a significant, unascertainable delay, although land acquisition is progressing.
QIP Monitoring Report Submission Details
Orchid Pharma Limited submitted the mandatory Monitoring Agency Report to the stock exchanges concerning the utilization of funds raised via the Qualified Institutions Placement (QIP). This report covers the activity for the quarter ending December 31, 2025. The QIP raised an aggregate amount of Rs. 400 crores, and the monitoring is governed by requirements set out under Regulation 41(4) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.
Key Findings on Object Utilization
The Monitoring Agency (Care Ratings Limited/CareEdge) provided detailed feedback on the deployment against the originally disclosed objects:
1. Jammu Manufacturing Facility Investment (OBPL)
- Original Cost Projection: Rs. 90.00 Crore.
- Revised Cost Projection: Rs. 135.00 Crore.
- Utilization Status: An amount of Rs. 73.02 Crore was utilized during the quarter, resulting in a total utilization of Rs. 135.00 Crore by quarter-end.
- Delay Assessment: The Monitoring Agency noted that there is a significant delay in the implementation of this object, although the exact extent is not ascertainable.
- Company Commentary: The delay stems from land acquisition issues, specifically finalizing agreements with farmers and securing the Change of Land Use (CLU) approvals. Registration of approximately 176.65 Kanal of land is expected to be completed by March 2026. Construction activity is stated to be in an advanced stage.
2. Repayment of Borrowings
- Original Cost Projection: Rs. 141.00 Crore.
- Revised Cost Projection: Rs. 195.46 Crore.
- Utilization Status: The entire amount of Rs. 195.46 Crore has been utilized, with Rs. 54.46 Crore utilized during the quarter for repayment towards working capital borrowings.
3. Alathur API Facility Capex
- Original Cost Projection: Rs. 99.82 Crore.
- Revised Cost Projection: Rs. 0.36 Crore.
- Utilization Status: The entire allotted revised amount of Rs. 36 lakhs was utilized as of June 30, 2025.
- Company Commentary: The company confirmed that the entire amount allotted per the revised schedule has been utilized, and no amount remains unutilized.
4. General Corporate Purposes (GCP)
- Utilization Status: The total utilized amount by the end of the quarter was Rs. 63.72 Crore.
- Note: The company confirmed that it has completed utilizing the GCP portion as of March 31, 2025.
Deployment of Unutilized Proceeds
The unutilized proceeds amounting to Rs. 61.98 Crore at the end of the quarter were deployed in short-term instruments:
- Fixed Deposit with Yes Bank Ltd: Total invested amount of Rs. 61.97 Crore across three separate FDs maturing between March 2026 and June 2026, earning interest rates between 6.45% and 6.60%. Interest earned is being transferred to the Corporate Credit (CC) account for general business operations.
Shareholder Approvals and Revisions
The report confirms that major revisions to the object allocation were approved by shareholders via an AGM resolution dated September 20, 2025. This resolution led to an increase in allocation towards the Jammu project and debt repayment, while the allocation for the Alathur API facility was reduced.
Source: BSE
