TTK Healthcare shares slumped over 4 per cent in intraday after the company’s board approved the voluntary delisting of its shares from the stock exchanges. In a regulatory filing, the Chennai-based company on Thursday said its board of directors has passed a special resolution to seek shareholder approval for the delisting proposal. 

According to the filings, the company has set the floor price for the delisting offer at ₹1,051.31 per share, 24 per cent lower than its closing price (₹1,308.95 apiece on the NSE) on Wednesday. The discounted offer price did not go well with the investors and share price of TTK Healthcare fell to an intraday low of ₹1,251 per share on the NSE. However, it ended the day at ₹1,309.80 apiece, slightly higher than Wednesday’s closing price. 

On April 5, the Woodward’s Gripe Water maker announced that its promoters have proposed to acquire all the equity shares held by public shareholders and file for voluntary delisting of its shares. The stock price of the company rallied to a high of ₹1,474 per share on the next day.

Exit opportunity

As of March 2023, the promoter Group’s stake stands at 74.56 per cent of the paid-up equity share capital of the company. In their proposal, TTK Healthcare promoters said the delisting is to provide an “exit route” for the public shareholders. “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,” the company said in its delisting proposal. 

As per the latest filings, voting on the delisting proposal through electronic means / postal ballot forms will be open from April 23 to May 22 and the voting results will be declared on May 24.

Selling human-pharma biz

In March 2022, TTK Healthcare announced that its board has approved the sale of its human-pharma business to BSV Pharma for ₹805 crore. The company added that post-exit of the human-pharma business, it is left with a host of consumer product lines with a single-digit margin. “In a highly competitive environment as well as B2B and white-label businesses that require separate attention and significant cash outflow,” it added.