TTK Healthcare hits 5-year high on delisting plan; zooms 70% in 14 days

The board of directors are scheduled to meet on April 20, 2023 to consider the proposal for voluntary delisting of the equity shares of the company.

Shares of TTK Healthcare hit five-year high at Rs 1,440 as they rallied nearly 15 per cent on the BSE in Thursday’s opening trade after the company announced voluntary delisting plan.

The meeting of board of directors of TTK Healthcare will be held on April 20, 2023 to consider the proposal for voluntary delisting of the equity shares of the company, having the face value of Rs 10 per share, the company said in an exchange filing.

The stock had hit a record high of Rs 1,457.65 on February 16, 2018. In past 14 trading days, the market price of TTK Healthcare has zoomed 70 per cent from a level of Rs 847.75 on March 15, 2023.
 

At 09:19 AM; the stock quoted 10 per cent higher at Rs 1,380, as compared to 0.24 per cent decline in the S&P BSE Sensex.

TTK Healthcare said its promoters expressed their intention to acquire all the equity shares that are held by public shareholders, either individually or collectively together with other members of the Promoter Group as the case may be; and consequently voluntarily delist the equity shares from the stock exchanges.

As on December 2022, the promoters held 74.56 per cent stake in TTK Healthcare. The individual shareholders held 15.49 per cent holding in the company. While, from the remaining 9.95 per cent stake, foreign institutional investors held 2.32 per cent stake, followed by mutual funds (2.17 per cent) and bodies corporate (3.17 per cent), the shareholding pattern data shows.

Post exit of the human-pharma business of the company, it is left with a host of consumer product lines with single digit margin and in highly competitive environment as well as B to B and white-label businesses that require separate attention and significant cash outflow, TTK Healthcare said on rationale for delisting proposal.

The company further said that promoters believe that instead of subjecting the public shareholders to uncertainties it would be fair to provide them an exit opportunity through a delisting offer.

Thus the proposed delisting is in the interest of the Public Shareholders as it will provide them an opportunity to exit from the company at a price determined in compliance with the Delisting Regulations, the company said.

The proposed delisting would enable the members of the Promoter Group to obtain full ownership of the company, which in turn will provide enhanced operational, financial and strategic flexibility, it added.