Promoter Dhanuka Laboratories Ltd said it will sell about eight per cent of Chennai-based Orchid Pharma.
The allocation shall be at or above the floor price of Rs 375 per equity share, Gurugram-based Dhanuka said.
JM Financial Institutional Securities Ltd and Edelweiss Securities Ltd will act as brokers for the deal.
Dhanuka had taken over the Chennai-based drugmaker in April last year under an insolvency resolution plan.
Lenders to Orchid Pharma received Rs 1,116 crore going by the resolution plan offered by Dhanuka. This was around 35% of the total debt the company owed its lenders.
Initially, Ingen Capital had emerged as the winner of Orchid Pharma with a bid of Rs 1,490 crore in 2018. However, it failed to make the payment.
Orchid Pharma was among the 28 large corporate defaulters in the Reserve Bank of India’s second list of debt-laden companies that were referred for insolvency in August 2017. It owed a total of Rs 3,200 crore to a consortium of 24 banks.
Dhanuka is part of a group that also has business interests in agrochemicals and pesticides. The company, set up in 1998, makes active pharmaceutical ingredients, drugs in semi-finished dosages and intermediates, its website shows.
Orchid Pharma’s shares fell 10% lower on Thursday at Rs 1,187.85 apiece on the BSE.