Markets have beaten Orchid Chem to a pulp down 12% as investors and traders think that the new $100 mln raised though prudent, paying off FCCB and lesser than the original loan plus interest is going to be a big loss for Orchid. The Rupee is in a downtrend from 54 now to likely a number above 60 which will reflect in MTM losses and increasing rupee payments on the balance sheet. However, with consistent dollar revenues, Orchid could well balance any MTM losses and Gains on a quarter to quarter basis as both sides of the Balance sheet are fully covered in exposure with $100mln of exports each quarter at avery conservative basis (in a stressed scenario)

Posted via email from The India Investment Post