Thyrocare Technologies slipped 3.38% to Rs 508.15 after the company said its audit committee recommended that it is not expedient to accept the offer of Dr. A. Velumani at this juncture.
The board of directors met on 21 September 2019, to discuss about the offer of Dr. A. Velumani, chairman, managing director & CEO to acquire the shareholding of Nueclear Healthcare, the wholly owned subsidiary.The audit committee, which discussed the matter prior to the board meeting, had reviewed the valuation reports received from Karvy Investor Services and noted the long gestation period of this business in terms of returns. The committee also felt that accepting the offer of Dr. A. Velumani may result in dilution of his focus and time, which is not in the interest of the company.
Accordingly, the audit committee had recommended that it is not expedient to accept the offer of Dr. A. Velumani at this juncture. The board accepted the above recommendation of the audit committee.
Meanwhile, the S&P BSE Sensex was up 1241.62 points or 3.27% to 39,256.24. The market surged after the Finance Minister Nirmala Sitharaman on Friday, 20 September 2019, slashed corporate tax rate to 22% without exemptions. The effective corporate tax rate after surcharge now stands at 25.17%. The step has significant positive implications for corporates' profitability, broader economy and market valuations.
As on 31 March 2019, Thyrocare Technologies paid a corporate tax of 35.16%.
On the BSE, 4777 shares were traded in the Thyrocare counter so far compared with average daily volumes of 1835 shares in the past one quarter. The stock hit a high of Rs 534.9 and a low of Rs 500 so far during the day.
The stock hit a 52-week high of Rs 677.95 on 10 Oct 2018. The stock hit a 52-week low of Rs 406.65 on 31 Jul 2019.
On a consolidated basis, Thyrocare's net profit rose 17.4% to Rs 27.47 crore on a 12.9% increase in the net sales to Rs 109.73 crore in Q1 June 2019 over Q1 June 2019.
Thyrocare Technologies is a chain of diagnostic and preventive care laboratories, based in Navi Mumbai. The company has 1,122 outlets and collection centers across India and parts of Nepal, Bangladesh and the Middle East.
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