Thyrocare surges as 5% equity exchanges hands in the deal

20 Jun 2023 , 03:19 PM

Thyrocare Technologies’ share price surged 5 % on June 20 following the exchange of 29.11 lakh shares (representing 5.5 % equity) on the BSE at an average price of Rs 488 per share.

The recent transaction occurred after Thyrocare’s meetings with Artisan Partners and Grandeur Peak Global Fund, which took place two weeks prior.

According to the data, As of March 2023, Docon Technologies, the parent company of Pharmeasy, holds a 71 % stake in Thyrocare. Arisaig Asia Fund Limited, a key foreign institutional investor, owns a 6.1 % stake, while Nippon India Small Cap Fund has the largest mutual fund stake at 6.42 %.

All of the promoter shareholdings are pledged with lenders. Thyrocare’s margins have declined significantly over the past year due to the contraction in the high-margin COVID-related business. The operating margins for the March 2023 quarter fell below 20 % to 18.24 %.

In Q4, the company’s net profit stood at Rs 13.71 crore, marking a 36 % year-on-year decline. The decrease was attributed to non-cash items of ESOPs (Employee Stock Ownership Plans) and provision for receivables, as stated by the company.

In 2021, PharmEasy acquired a 66.1 % stake in Thyrocare for Rs 4,546 crore, making it one of the largest deals in the Indian diagnostic sector. US-based Neuberger Berman has since revised the fair value of PharmEasy to $4.39 billion, down from the previous valuation of $5.6 billion when the company attempted to go public in 2021 but later withdrew its proposal.

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