Thyrocare Tech zooms 12% in two days as ICICI Prudential MF picks up stake

Shares of Thyrocare Technologies surged nearly 5 percent in early trade on June 21, enjoying a positive sentiment after ICICI Prudential Mutual Fund picked up a stake in the company.

With the gains in today’s session, the stock has recorded nearly a 12 percent jump in two sessions. The stock also settled nearly 7 percent higher on June 20 post the large deal.

On June 20, Thyrocare’s foreign institutional investor Arisaig Asia Consumer Fund offloaded 26.72 lakh equity shares or a 5.05 percent stake in the company at an average price of Rs 488.18 per share. Arisaig Asia made Rs 130.47 crore from that transaction.

With this deal, Arisaig Asia’s stake in the diagnostic company came down to 1.06. Arisaig Asia held a 6.11 percent stake in Thyrocare as per the company’s shareholding data as on March 31.

However, the stock did not see any correction as a major part of the stake sold by Arisaig Asia was picked up by domestic institutional investor, ICICI Prudential Mutual Fund. The mutual fund house bought 22.53 lakh equity shares or a 4.25 percent stake in Thyrocare at an average price of Rs 488 per share. Prior to the deal worth Rs 109.95 crore?, ICICI Prudential did not hold a stake in the diagnostic firm.

At 12.38 pm, share of Thyrocare Technologies were trading at Rs 531.10 on the National Stock Exchange, up 4.10 percent. Trading volumes were also strong as 13 lakh shares changed hands on the exchanges, as against the one-month average of three lakh shares.

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In recent times, diagnostic companies have been facing challenges on the margin front, largely due to pricing pressure from the entry of new players, capital expenditure plans to acquire a higher market share and a high base from COVID-related sales.

Thyrocare also met with a similar fate as its operating margin slipped below the 20 percent mark to 18.24 percent in January-March. The firm also reported a 36 percent on year decline in its net profit for Q4, dragged by a higher COVID base.

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