TTK Healthcare falls 4% as board approves voluntary delisting of shares

Shares of TTK Healthcare fell over 4 percent in trade on April 20 after the company’s board approved the voluntary delisting of equity shares.

Since the floor price for the delisting offer was fixed at Rs 1,051.31 per share, reflecting a discount of around 20 percent from the stock’s closing price on Wednesday, it dented investor sentiment.

As a result, investors dumped the stock and at 02.07 pm, shares of TTK Healthcare were trading 2.22 percent at Rs 1,279.90 on the National Stock Exchange.

Catch all the market action on our live blog

Last year, the company withdrew from its human pharma business and now focuses solely on consumer product lines such as Eva women’s deodorant, Good Home home care brand, and Skore condoms. These products operate in a fiercely competitive environment and generate only a single-digit margin. Consequently, the management has chosen to delist the company, citing this as one of the primary reasons.

Over the last several quarters, the company’s operating margins have fluctuated between 4 and 9 percent.

Furthermore, the company’s promoters believe any long-term business strategy would require streamlining some operations while expanding into new categories and businesses, each with distinct risk profiles and funding requirements.

“It wouldn’t be fair to subject public shareholders to all these uncertainties, and thus provide them an exit opportunity through a delisting offer,” the company had said in an exchange filing earlier.

Axis Mutual Fund, Jupiter India Fund and Investor Education and Protection Fund are the institutional firms holding a stake in TTK Healthcare. Axis Mutual Fund refused to comment when asked if they will be willing to surrender their stake in the company.