Drugmaker Orchid Chemicals & Pharmaceuticals said on Monday its active pharmaceutical ingredients (APIs) making

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facility received a closure notice regarding disposal of solid waste, pushing its shares down over 5%.

The Tamil Nadu Pollution Control Board (TNPCB) has cited non-compliance regarding solid waste disposal at the facility that makes antibiotic cephalosporin, the company said in a statement.

"I don't think of a significant [impact] because you know, any company will have working capital... which will be there in the pipeline. So it all depends on how earliest we come back," K Raghavendra Rao, chairman and managing director, Orchid Chemicals & Pharmaceuticals, told Reuters by telephone.

"Cephalosporin is a key product for Orchid Chemicals and the closure may lead to certain sales impact. However, there needs to be more clarity on how serious the violations are," a pharma analyst with a Mumbai-based brokerage said.

The company is in dialogue with TNPCB officials and is confident of resolving the issues and bringing the plant to a fully operational stage at the earliest, it said in a statement.

At 1:10 pm, shares of Orchid Chemicals, which have lost 19.4% in value over the last three months, pared losses and were trading at Rs 245.10, down 1.45% in a weak Mumbai market.