City-based TTK Healthcare Ltd., a part of the TTK group, has decided to delist its shares from the bourses as the promoters feel it would provide them enhanced operational, financial and strategic flexibility.
An announcement to acquire all the shares from the public and to voluntarily delist the shares from the bourses by making an offer in accordance with regulations was made by the company on Thursday.
The discovered price will be determined through the reverse book-building process. The floor price will be announced in due course. On Thursday, the shares closed at ₹1,295.95 on BSE, a gain of ₹39.25 or 3.12%.
Right now, among the promoters of the company, TT Jagannathan holds 7.59 lakh shares representing 5.37% of all shares, TT Raghunathan 38,797 shares (0.27%), Shanthi Ranganathan 58,360 (0.41%), Bhanu Raghunathan 56,000 (0.40%), Latha Jagannathan 29,728 (0.21%) and T.T. Krishnamachari & Co. 95,32,610 shares (67.46%).
The aggregate shareholding of the promoter group is over 1.05 crore shares aggregating to 74.56% and rest of about 36 lakh shares is with public. The company has a market cap of ₹1,831 crore, according to BSE.
Explaining the rationale, the promoters said in a filing post exit of the human-pharma business, the company is left with a host of consumer product lines with single digit margin in a highly competitive environment that requires separate attention and significant cash outflow.
The promoters also perceive that any long-term business plan would involve rationalisation of certain portfolios, expanding operations into new product categories and new business activities which may have different risk profiles, funding requirements, and longer gestation periods compared to the current risk profile of the company; hence it would be more prudent to preserve cash.
“Instead of subjecting the public shareholders to uncertainties it would be fair to provide them an exit opportunity through a delisting offer,” they said.
