Chennai-based TTK Healthcare Ltd. has received in-principle approval from the major bourses for voluntary delisting of its shares.
The makers of Woodward’s Gripe Water said in a Detailed Public Announcement that the reverse book-building process to accept the shares from the public will commence on July 20 and close on July 26.
The promoters have revised the exit floor price to ₹1,201.30 from ₹1,051.31 apiece. Shares of the company lost ₹18.40 or 1.39% to close at ₹1,307.30 on the BSE on Thursday.
The promoter group, holding a 74.56% stake in the company, has opened an escrow account and deposited nearly ₹432 crore as total consideration for 36 lakh shares.
Explaining the rationale for delisting, post exit of the Human Pharma business, the acquirer said, the company was left with a host of consumer product lines with single-digit margin. In a highly competitive environment, it required separate attention and significant cash outflow.
Also keeping in view the long-term business plan with longer gestation periods, the promoters felt it would be more prudent to preserve the cash and to offer an exit opportunity to the public shareholders through a delisting offer.
