Orchid CB receives brutal treatment in the secondary market
A hefty increase in the deal size and concern about the use of proceeds push the bond price sharply below par.
The convertible bonds issued by Indian drug maker Orchid Chemicals Pharmaceuticals on Monday have been the talk of the CB community this week û and not for reasons that the company would likely want to remember.
Still, the ordeal has highlighted the importance of proper communication, not only by the banks involved in the transaction but by issuers too as they need to make sure investors are fully aware of their intentions.
OrchidÆs zero-coupon CB appears to have failed on...
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