Orchid Pharma Share Price Gains Over 8% as Merger with Dhanuka Laboratories Receives Final NCLT Approval

The Chennai Bench of the National Company Law Tribunal (NCLT) has sanctioned the merger of Dhanuka Laboratories Limited with Orchid Pharma Limited.  

The official order was released on June 11, 2026, with the merger backdated to an appointed date of April 1, 2024. 

Merger Details and Strategic Objectives 

The merger between Orchid Pharma and Dhanuka Laboratories is part of a strategic plan initiated in May 2019.  

The combined entity aims to achieve an annual sales turnover of ₹1,400 to ₹1,500 crore and a projected EBITDA of ₹200 to ₹250 crore.  

The merger is expected to create operational synergies by expanding product offerings, eliminating inter-company conflicts, and optimising costs. 

Share Exchange Ratio and Valuation 

According to the valuation report by SSPA & Co. Registered Valuers, Dhanuka Laboratories' equity shares will be restructured from a face value of ₹100 to ₹10.  

For every 5 fully paid-up equity shares held in Dhanuka Laboratories, shareholders will receive 161 fully paid-up equity shares in Orchid Pharma, each with a face value of ₹10. 

Read More: REC Receives Presidential Approval for Merger with Power Finance Corporation! 

Regulatory Approvals and Employee Protections 

The Registrar of Companies, Chennai, confirmed that both companies are compliant with filings up to FY24, with no active investigations.  

The merger received no-objection clearances from the Regional Director, the Official Liquidator, and the Income Tax Department.  

The NCLT has mandated that all Dhanuka employees will transfer to Orchid Pharma without any break in service, maintaining their employment terms. 

Next Steps for Merger Effectiveness 

The merger will become effective once the certified NCLT order is registered with the Registrar of Companies, Chennai.  

Orchid Pharma will also file a revised Memorandum and Articles of Association to expand its authorised capital structure. 

Orchid Pharma Share Price Performance  

As of June 12, 2026, at 1:36 PM, Orchid Pharma share price on NSE was trading at ₹911.30 up by 7.73% from the previous closing price. 

Conclusion 

The merger between Orchid Pharma and Dhanuka Laboratories, approved by the NCLT on June 5, 2026, aims to achieve ₹1,400-1,500 crore in revenue and ₹200-250 crore in EBITDA. The share exchange ratio involves restructuring Dhanuka's shares and providing Orchid shares to its shareholders. 

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