Thyrocare Technologies share slumped over 9% today after digital healthcare company Pharmeasy announced that it would buy a controlling stake in the diagnostic chain for Rs 4,546 crore.
The Delhi-based company would buy 66.1 per cent stake in Thyrocare from promoter A Velumani and his affiliates at Rs 1,300 per share. The proposed deal shocked investors as the deal price was 11% lower than the stock price of the firm.
Analysts were of the view that short-term investors should sell their shares considering the difference between the stock price and deal price. There is a lack of clarity from the new management about the future course of action (offer for sale and delisting among others) which is an additional risk for investors, they said.
Yash Gupta, Equity Research Associate, Angel Broking said, “Pharmeasy’s parent company will make an open offer to acquire an additional 26% stake in Thyrocare at Rs 1,300 per share. Currently, the stock is trading at around Rs 1,370 per share and we expect the stock to remain in this range for some time. Short term investors should book profits rather than applying for the open offer.
Long-term investors should remain invested and wait for fresh buying opportunities. Pharmeasy has a platform along with a good client base, which will elevate Thyrocare’s low-price high-volume business to the next level. We expect the stock to perform well upon completion of this open offer.”
Thyrocare Technologies stock fell 9.1% to Rs 1,316.25 against previous close of Rs 1,448.05 on BSE.┬а The stock opened lower at Rs 1,445.
Total 2.64 lakh shares changed hands amounting to turnover of Rs 35.73 crore on BSE.
Market cap of the firm fell to Rs 6,995 crore. The share trades higher than 20 day, 50 day, 100 day and 200 day moving averages but lower than 5 day moving averages.
It has risen 44.5% since the beginning of this year and gained 161.11% during the last one year.
In a month, the share has zoomed 27.22%.
Thyrocare is the largest B2B player in the diagnostics space and has a network of 3,330 plus collection centres across in 2,000 plus towns in India.
API Holdings, the parent of the unicorn Pharmeasy, and A Velumani, Chairman and Managing Director of Thyrocare Technologies, signed a definitive agreement for the deal.
API Holdings has launched an open offer to buy 26 per cent stake in Thyrocare.
The transaction, which is significant because an entrenched player is getting acquired by a startup, will also see a subsidiary of API making an open offer to acquire an additional 26 per cent stake in the listed Thyrocare.
Velumani will separately buy a minority non-controlling stake of less than 5 per cent in API as part of a series of equity investments by existing and new investors of API.
Thyrocare stock closed 6.23 per cent up at Rs 1,448.05 on BSE on Friday.
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